Corcovado Pharmaceuticals. Corcovado Pharmaceutical's cost of debt is 7 20%. The risk-free rate of interest is 4.00%. The expected retum on the market portfolio is 8.50% Corcovado's effective tax rato is 35%. Its optimal capital structure is 30% debt and 70% equity. a. I Corcovado's beta is estimated at 0.90. what is its weighted average cost of capital? b. Il Corcovado's bota in cutimated at 0.40, wgnificantly lower because of the continuing proft prospects in the global pharmacector, what in the weighted average cost of capital? a. I Corcovado's beta is estimated at 0.90, what is its weighted average cost of capital? % (Round to two decimal places.)