Given the following information: Interest rate 8% Tax rate 40% Dividend $2.00 Price of common stock $55.00 Growth rate of dividends 5% Debt ratio 45% a) Determine the firm's cost of capital. b) if the debt ratlo rises to 60 percent, the Interest rate rises to 9 percent and the price of the stock falls to 535. what is the cost of capital? Why is this cost different