States and 10% in Europe. The same relationship holds for equity financing. b. If WestGas plans an expansion of only $60 million, how should that expansion be financed? c. What will be the weighted average cost of capital for the expansion? a. If WestGas plans an expansion of $120 million, what is the lowest average cost of capital for the first $40 million of new capital? % (Round to two decimal places.)