6. Prokter approxi er and Gramble le (PG) has historically maintained a debt-to-equity ratio (D/E) of 03. Its cost of equity is 7.5% and it can borrow at 4.3%. PG's tax rate is 40%. debt-t a) Determine PG' es it can increase debt without any serious risk of distress or other costs. With a higher o-equity ratio of 0.5, it believes its borrowing costs will rise only slightly to 4.6%. s current (before increasing its debt-to-equity ratio) asset return rA b) Determine PG's WACC(nwacc) after PG raises its debt-to-equity ratio to 0.5 Assume that a kilogram of silver costs $575 USD in New York and $9800 MXN in Mexico Ci If the PesoDollar exchange rate is 17.16 MIN/1 US 7. D,is there an arbitrage opportunity if the average transaction cost is $8 per kilogram of silver