Currently, Meyers Manufacturing Enterprises $($MME$)$ has a capital structure consisting of $35\%$ debt and $65\%$ equity. MME's debt currently has a $6\mathrm{.}5\%$ yield to maturity. The risk$-$free rate $($rRF$)$ is $4\mathrm{.}5\%,$ and the market risk premium $($rM $$ rRF$)$ is $5\mathrm{.}5\%.$ Using the CAPM, MME estimates that its cost of equity is currently $12\mathrm{.}4\%.$ The company has a $40\%$ tax rate.

a$.$ What is MME's current WACC? Round your answer to $2$ decimal places. Do not round intermediate calculations.

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b$.$ What is the current beta on MME's common stock? Round your answer to $4$ decimal places. Do not round intermediate calculations.

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c$.$ What would MME's beta be if the company had no debt in its capital structure? $($That is$,$ what is MME's unlevered beta, bU$?)$ Round your answer to $4$ decimal places. Do not round intermediate calculations.

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MME's financial staff is considering changing its capital structure to $45\%$ debt and $55\%$ equity. If the company went ahead with the proposed change, the yield to maturity on the company's bonds would rise to $7\%.$ 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? Round your answer to $2$ decimal places. Do not round intermediate calculations.

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e$.$ What would be the company's new WACC if it adopted the proposed change in capital structure? Round your answer to $2$ decimal places. Do not round intermediate calculations.

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