5. Macro Development Agency (MDA) has a market capitalization of $35 million and a debt-equity ratio of 0.5 . The equity cost of capital and debt cost of capital are 14% and 9%, respectively. MDA's corporate marginal tax rate is 25%. (a) Calculate MDA's after-tax weighted average cost of capital (WACC). (b) MDA plans to issue $10 million's worth of bonds. As a result of the increased debt-equity ratio, the value of the existing bonds is marked down by 4%. Following this change in the capital structure, you are given that the new equity cost of capital is equal to 1.5 times the new debt cost of capital. Assuming that the Modigliani-Miller propositions hold, calculate MDA's new after-tax WACC