Question 2 Under the tax rate of 20%, an unlevered firm ShaTin Company's WACC is currently 11 percent. The company can borrow at 7 percent. a. What is Sha Tin Company's cost of equity? b. If the firm converts to 20 percent debt, what will its cost of equity be? If the firm converts to 60 percent debt, what will its cost of equity be? d. What is Shalin Company's WACC in parl (b)? In part (c)? C