Problem 18-5 WACC Whispering Pines Incorporated is all-equity-financed. The expected rate of return on the company's shares is 12%. a. What is the opportunity cost of capital for an average-risk Whispering Pines investment? = b. Suppose the company issues debt, repurchases shares, and moves to a 30% debt-to-value ratio ( 0.30). What will be the company's weighted-average cost of capital at the new capital structure? The borrowing rate is 7.5% and the tax rate is 21%. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. a. Opportunity cost of capital b. Weighted-average cost of capital % %