1. Given the following table (assume no preferred stock is outstanding or to be issued), what should be the WACC at 40%, 50% debt:?

Table 14.3. Cost of Capital Projections for Exercise 2

% debt	cost of debt	after-tax cost of debt (T=21%)	% equity	cost of equity	WACC
0%	5.0%			9.0%
10%	5.0%			9.1%
20%	5.5%			9.3%
30%	6.2%			9.6%
40%	7.0%			10.2%
50%	7.8%			11.6%
60%	8.6%			13.0%
70%	9.5%			14.8%
80%	10.5%			16.0%
90%	12.0%			19.0%
100%	15.0%			24.0%