Divisional COC Practice Questions. 1. Whispering Pines, Inc. is financed with 45% debt. The expected rate of return on the company's shares is 8% and its beta is 1.2. The risk free rate is 3% and the market risk premium is 5%. Suppose the company issues equity, and moves to a 30 percent debt to total assets ratio. The borrowing rate is 5.5% and the tax rate is 40%. What will be the company's WACC at the new capital structure? Show as much as you can on your work