8. One of your new employees notes that your debt has a lower cost of capital (4%) than your equity (13%). So, he suggests that the firm swap its capital structure from 31% debt and 69% equity to 69% debt and 31% equity instead. He estimates that after the swap, your cost of equity would be 18%. a. What would be your new cost of debt? Make your calculations based on your firm's pre-tax WACC. b. Have you lowered your overall cost of capital?