One of your new employees notes that your debt has a lower cost of capital (5%) than your equity (16%) So, he suggests that the firm swap its capital structure from 33% debt and 67% equity to 67% debt and 33% equity instead. He estimates that after the swap, your cost of equity would be 19%. a. What would be your new cost of debt? Make your calculations based on your firm's pre-tax WACO. b. Have you lowered your overall cost of capital? a. The new cost of debt is 11%. (Round to two decimal places.)