One of your new employees notes that your debt has a lower cost of capital (5%) than your equity (15%). So, he suggests that the firm swap its capital structure from 30% debt and 70% equity to 70% debt and 30% equity instead. He estimates that after the swap, your cost of equity would be 20%. a. What would be your new cost of debt? Make your calculations based on your firm's pre-tax WACC. b. Have you lowered your overall cost of capital? Answer: a. The new cost of debt is %. (Round to two decimal places.) b. Have you lowered your overall cost of capital? (Select the best answer below. Answer "A", "B", "C", or "D") A. Yes, because your overall cost of capital (WACC) is determined by the risk of your assets. B. Yes, because your overall cost of capital (WACC) is not determined by the risk of your assets. C. No, because your overall cost of capital (WACC) is determined by the risk of your assets. D. No, because your overall cost of capital (WACC) is not determined by the risk of your assets