A firm has no debt but can borrow at 8 percent. The firms WACC is currently 11 percent, and the tax rate is 35 percent. If the firm converts to 25 percent debt, what will its WACC be?

10.04%

10.74%

11%

9.44%

8%

A firm has no debt but can borrow at 8 percent. The firms WACC is currently 11 percent, and the tax rate is 35 percent. What is the firms cost of equity?

8%

13%

11%

9.5%

10%

A firm has no debt but can borrow at 8 percent. The firms WACC is currently 11 percent, and the tax rate is 35 percent. If the firm converts to 25 percent debt, what will its cost of equity be?

13.38%

11.65%

12%

11%

9.5%