A firm currently has a debt-equity ratio of 0.8. The debt, which is virtually riskless, pays an interest rate of 5 %. The expected rate of return on the equity is 15 %. 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 = 9.67 (completed already)

What would happen to the expected rate of return on equity if the firm changed its debt-equity ratio to 0.4? Assume the firm pays no taxes, the cost of debt does not change, and that the original WACC is 10.56 %. Enter your answer as a percentage rounded to two decimal places. Do not include percentage sign as part of your answer.

Return on Equity =