A firm currently has a debt-equity ratio of 2/3. The debt, which is virtually riskless, pays an interest rate of 7 %. 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 8.80 Correct response: 8.80.02 What would happen to the expected rate of return on equity if the firm changed its debt-equity ratio to 1/4 ? Assume the firm pays no taxes, the cost of debt does not change, and that the original WACC is 8.80 %. Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign as part of your answer Return on equity = Number