ABC has a current equity market capitalization of $60 billion an $40 billion of net debt. Their credit rating is AA, YTM on long-term bonds is 4%, equity beta is 1.2. The risk-free rate is 2%. he market risk premium is 5% and corporate tax rate is 25%

A) What is ABC's after-tax WACC?

B) If ABC changed their financial structure to 20% debt (80% equity). What will cost of equity capital be AFTER the change in financial structure, assuming there is no change in the cost of debt?