(4.5 points) Prokter and Gramble (PG) has historically maintained a debt-equity ratio of approximately 0.30. The firm enjoys very stable demand for its products, and consequently it has a low equity beta of 0.4 and can borrow at 3.20%, just 20 basis points over the risk-free rate of 3%. The expected return of the market is 8%, and PG's tax rate is 35%. PG believes it can increase debt without any serious risk of distress or other costs. With a higher debt-equity ratio of 0.60, it believes its borrowing costs will rise only slightly to 3.60%. 7. PG announces that it will raise its debt-equity ratio to 0.5 through a leveraged recapitalization, determine WACC after the recapitalization