A company has an original capital structure of; $50,000 in Total Debt and $100,000 in Equity. The Cost of Total Debt is 10.0% and Equity is 13.0%. It wants to know if it should increase its Total Debt to $100,000 while maintaining the same amount of Equity. The new cost of Debt is 9.0% cost and corporate taxes are at 45.0%. Find the new Cost of Capital for the company's new Capital Structure (WACC).

Question 26 options:

a) 0.10075

b) 0.01705

c) 0.01005

d) 0.15007