Currently, Forever Flowers Inc. has a capital structure consisting of $35\%$ debt and $65\%$ equity. Forever's debt currently has a $9\%$ yield to maturity. The risk$-$free rate $($rRF$)$ is $5\%,$ and the market risk premium $($rM $-$ rRF$)$ is $7\%.$ Using the CAPM, Forever estimates that its cost of equity is currently $13\mathrm{.}5\%.$ The company has a $25\%$ tax rate.

A$.$ What is Forever's current WACC? Round your answer to two decimal places.

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B$.$ What is the current beta on Forever's common stock? Round your answer to two decimal places.

C$.$ What would Forever's beta be if the company had no debt in its capital structure? $($That is$,$ what is Forever's unlevered beta, bU$?)$ Do not round intermediate calculations. Round your answer to two decimal places.

Forever's financial staff is considering changing its capital structure to $40\%$ debt and $60\%$ equity. If the company went ahead with the proposed change, the yield to maturity on the company's bonds would rise to $10\mathrm{.}5\%.$ The proposed change will have no effect on the company's tax rate.

D$.$ What would be the company's new cost of equity if it adopted the proposed change in capital structure? Do not round intermediate calculations. Round your answer to two decimal places.

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E$.$ What would be the company's new WACC if it adopted the proposed change in capital structure? Do not round intermediate calculations. Round your answer to two decimal places.

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F$.$ Based on your answer to part e$,$ would you advise Forever to adopt the proposed change in capital structure?