Sutherland has $100 million of equity capital, which has a required rate of return of 10%. The company tax rate is 40%. Required Calculate the weighted average cost of capital under each of the fol- lowing (independent) alternatives, assuming that the size of the com- pany does not change: (a) No change (b) Borrowing $5 million at 8% interest and using it to pay a divi- dend of $5 million (c) Borrowing $50 million at 8% interest and using it to pay a div- idend of $50 million (d) Borrowing $98 million at 8% interest and using it to pay a div- idend of $98 million 449