1. Roger Inc. is currently an all equity firm that has 500,000 shares of stock outstanding at a market price of $20 a share. EBIT is $1,500,000 and is constant forever. The required annual rate of return on the share is 12%. The corporate tax is 35%. The firm is proposing borrowing an additional $2 million in debt and uses the proceeds to repurchase stock. If it does so, the cost of debt will be 10%. What will be the WACC after the capital structure changes?