6. Ignoring taxes, the Ricardo Corporation has a WACC (RA) of 12 percent. It can borrow at 8 percent. 1) (10 points) If Ricardo has a target capital structure of 80 percent equity and 20 percent of debt, what is its cost of equity (RE) ? 2) (10 points) What is the cost of equity (RE) if the target capital structure is 40 percent equity? 3) (5 points) Calculate the WACC ( RA) in each case to verify that it is the same in both cases