Suppose CAPM applies and the applicable risk free rate is $5\%$ and market risk premium is $10\%.$ BBB Company has equity beta of $0\mathrm{.}35,$ and a debt beta of $0\mathrm{.}2,$ and the target D$/$E ratio is $2\mathrm{.}6.$ On average, in the last $3$ years, the tax paid was $105$ million on an EBT of $300$ million. What is WACC? What is BBB$$s modified WACC $($MWACC$)?$ What is the significance of MWACC? Explain why MWACC is lower than RE but higher than WACC.