CAN YOU EXPLAIN THIS FIGURE?

FIGURE 15.2 The WACC with and without Corporate Taxes 40% 35% 30% 25% Cost of Capital 20% Equity Cost of Capital (re) To Pretax WACC 15% WACC with Taxes 10% Debt Cost of Capital (ro) 5% 0% 0% After-Tax Debt Cost of Capital (r, (1 - Tc) 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Debt-to-Value Ratio (D/(E+ D)]