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Quesun 7 points) Saved Use the following information for questions 4-5 Right now, Simon Co. has a capital structure that consists of 20 percent debt

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Quesun 7 points) Saved Use the following information for questions 4-5 Right now, Simon Co. has a capital structure that consists of 20 percent debt and 80 percent equity, based on market values. The risk-free rate is 5 percent and the market risk premium is 5 percent . Currently the company's cost of cquity, which is based on the CAPM, is 15 percent and its tax rate is 40 percent. The company can borrow at risk-free rato. What would be Simon's weighted average cost of capital if it were to change its capital structure to 50 percent debt and 50 percent equity? 9.35% 10.4% 10.96% 5 9% 8.35%

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