The Board of Herminia has asked you to assess the company's capital structure. Use the information below to 1. set up the formula to compute WACC using only the data in the company's financial statements 2. recommend how the WACC of the company can be lowered if the economy and the company are expected to do well in the next two years Current stock price $12.50 # shares outstanding 1,000,000 Face value of debt $7,500,000 Recently quoted price on debt 97% of face Current yield to maturity on debt 6.5% Risk free rate 2% Herminia stock beta 1.10 Market risk premium 8% Corporate tax rate 22%