A firm's current capital structure consists of 50 percent debt and 50 percent common stock. The firm's before-tax cost of debt is 6 percent, its thx rate is 40 percent, and its cost of common stock is 11 percent (based on CAPM). Further, the risk-free rate is 4 percent and that the market risk premlum is 5 percent. Caiculate the firm's new weighted average cost of capital if it chamges to a capital structure of 40 percent debt and the balance is equity. 7.51508 7.9450% 7.622596 7.8375% A firm's current capital structure consists of 50 percent debt and 50 percent common stock. The firm's before-tax cost of debt is 6 percent, its thx rate is 40 percent, and its cost of common stock is 11 percent (based on CAPM). Further, the risk-free rate is 4 percent and that the market risk premlum is 5 percent. Caiculate the firm's new weighted average cost of capital if it chamges to a capital structure of 40 percent debt and the balance is equity. 7.51508 7.9450% 7.622596 7.8375%