number 8 please

Question 8 10 pts ABC Company is currently 100% equity and zero growth. The firm has an annual EBIT of $1,600,000, its current cost of equity is 10%, and the corporate tax rate is 25% (assume personal taxes are zero). The firm's CFO has decided to recapitalize by Issuing $8,000,000 in debt that carries an interest rate of 6% and repurchasing shares. Assuming that the assumptions of the Modigliani and Miller models hold, what is the expected WACC after the recapitalization? O 8.71% O 8.57% 9.27% Question 9 10 pts Cartwright Communications is considering making a change to its capital structure to reduce its cost of capital and increase firm value. Right now. Cartwright has a capital structure that consists of 10% debt and 90% equity, based on market values. The risk-free rate is 2x and the market risk premium is 6%. Currently the company's cost of equity, which is based on the CAPM is 10% and its tax rate is 25%. What would be Cartwright's estimated cost of equity if it were to change its capital structure to 50% debt and 50% equity? O 13.6.9% 14,92% O 12.37%