Question 2 (9M) Under the tax rate of 20%, an unlevered firm ST Company's WACC is currently 10 percent. The company can borrow at 6 percent. What is ST Company's cost of equity? (1M) b. If the firm converts to 25 percent debt, what will its cost of equity be? (2M) If the firm converts to 75 percent debt, what will its cost of equity be? (2M) d. What is ST Company's WACC in part (b)? In part (c)? (4M) a. c