C$-$U Ltd$.$ has no debt but can borrow at $9\%.$ The company is currently worth $5\mathrm{.}6$ million and it is expected that the firm will generate pre$-$tax cash flows of $1\mathrm{.}4$ million in perpetuity. The tax rate is $40\%.$

a$)$ What is the company$$s cost of equity?

b$)$ What is the company$$s WACC?

c$)$ If the company converts to $25\%$ debt, what will its cost of equity be$?$ What will be

the company$$s WACC in this case?