a$.$ Calculate the Weighted Average Cost of Capital $($WACC$)$ using the net income approach for the following three cases.

b$.$ Take reasonable assumptions and explain, with an example, how the WACC would have changed in the traditional view of capital structure.

Case $1$ Case $2$ Case $3$

Debt$/$market value of debt $($in Lakhs$)-10,000\mathrm{.}0020,000\mathrm{.}00$

Cost of debt $-5\%5\%$

Cost of equity $10\%10\%10\%$

Income $($in Lakhs$)5,000\mathrm{.}005,000\mathrm{.}005,000\mathrm{.}00$