Ashman Motors is currently an all equity firm. It has two million shares outstanding, selling for $43 per share. The company has a beta of 0.80, with the current risk free rate at 3.5% and the market premium at 7.6%. The tax rate is 40% for the company. Ashman has decided to sell $43 million of bonds and retire half its stock. The bonds will have a yield to maturity of 8.1%. The beta of the company will rise to 1.2 with the new debt. The company will be able to buy back the shares at $43 per share. 12. What was Ashman's WACC before selling the bonds? a. 8.10% c. 10.85% b. 9.58% d. 11.58% 13. What is its new WACC after selling the bonds and retiring the stock with the proceeds from the sale of the bonds? a. 4.86% c. 8.74% b. 7.24% d. 12.62%