Exhibit 16.2 Diggs Foundations, Inc. (DF) is a zero-growth company that currently has zero debt, and it has the data shown below. Now the company is considering using some debt, moving to the market value capital structure indicated below. The money raised would be used to repurchase stock. It is estimated that the increase in risk resulting from the additional leverage would cause the required rate of return on equity to rise somewhat, as indicated below. EBIT- $80,000New Debu/Value - 0%New Equity/Value - 20% Growth 80% 10.0%No. of shares = Orig cost of equity, Is- New cost of equity - 1,- 10,000 11.0%Price per share - $48.00 Tax rate 40%Interest rated 7.0% Refer to Exhibit 16.2. If this plan were carried out, what would be DF's new WACC and its new value of operations? WACC Value Select one: a. 9.64% S497.925 b. 9.83% S507,884 c. 10.03% S518,041 d. 10.23% S528,402 e. 10.74% $538,970