Purple Inc. has 10 million shares outstanding, now trading at 75 per share. The firm estimated the expected rate of return for shareholders to be 20 percent in the levered company. It has also issued 200 million long-term bonds at an interest rate of 8 percent. Purple Inc. pays tax at a marginal rate of 35 percent. QUESTION: 1)How much higher would the WACC be if the company used no debt at all? (For this problem you can assume that the firms overall asset return is not affected by its capital structure or by interest tax shields).

(ps: NO EXCEL PLEASE)