Need B

Problem 19-5 WACC Whispering Pines Inc. is all-equity-financed. The expected rate of return on the company's shares is 11.05%. a. What is the opportunity cost of capital for an average-risk Whispering Pines investment? (Enter your answer as a percent rounded to 2 decimal places.) Opportunity cost of capital 11.05% b. Suppose the company issues debt, repurchases shares, and moves to a 22% debt-to-value ratio (DIV = 0.22). What will be the company's weighted-average cost of capital at the new capital structure? The borrowing rate is 5.35% and the tax rate is 21%. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Weighted-average cost of capital %