A firm currently has a debt$-$equity ratio of $0\mathrm{.}5.$ The debt, which is virtually riskless, pays an interest rate of $6\%.$ The expected rate of return on the equity is $10\%.$ What is the Weighted$-$Average Cost of Capital if the firm pays no taxes? Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign in your answer.

WACC $=$

$9\mathrm{.}5$

Correct response: $8\mathrm{.}67\backslash$pm $0\mathrm{.}02$

What would happen to the expected rate of return on equity if the firm changed its debt$-$equity ratio to $0\mathrm{.}1?$ Assume the firm pays no taxes, the cost of debt does not change, and that the original WACC is $8\mathrm{.}67\%.$ Enter your answer as a percentage rounded to two decimal places. Do not include percentage sign as part of your answer.

Return on Equity $=$

Number