Prokter and Gramble (PG) has historically maintained a debt-to-equity ratio (D/E) of approximately 0.3. Its return on equity, re, is 7% and it can borrow at 4.3%. PG's tax rate is 35%. PG believes it can increase debt without any serious risk of distress or other costs. With a higher debt-to-equity ratio of 0.5, it believes its borrowing costs will rise only slightly to 4.5%. a. Determine PG's current asset return ra (before increasing its debt-to-equity ratio) b. Determine PG's cost of capital, WACC, after PG raises its debt-to-equity ratio to 0.5