Dunder-Mifflin Paper Company has a capital structure with assets financed 70% by bank loans and 30% by equity. The cost of debt is 10% and the cost of equity is 27%. Suppose that half of the equity capital is replaced with mezzanine debt at a coupon rate of 16% and that, as a result of equity capital being now more risky, the cost of equity capital rises to 31%. Calculate the weighted average cost of capital when there was no mezzanine debt and when mezzanine debt was contracted. The corporate tax rate is zero