currently has a D/E ratio of 0.25, a beta of 1.29, and a pre-tax cost of debt of 6.4%. Charlatan has a 21% marginal tax rate. a. If the current risk-free rate is 3.25% and the market risk premium is 5.5%, what is Charlatans current WACC? b. They are considering issuing more debt to reach a target D/E ratio of 0.40. If they issue more debt, the new cost of debt will rise to 6.75%. What would be the new beta with this capital structure? The new cost of equity? The new WACC? c. Does the new capital structure raise or lower the firms WACC?