The Buccaneer Company was recently formed to manufacture a new product. It has the following capital structure: The company's published beta coefficient is 1.5. The return on the market portfolio is, 09, and the risk free rate is .03. Assume a marginal tax rate of 40%. A. Compute the weighted-average cost of capital. B. Buccaneer's current debt/equity ratio is (6/14). They think they can lower the cost of capital by issuing $4,000,000 in new 8%, 20 year, $1000 par, mortgage bonds, and simultaneously buying back $4,000,000 in common stock, thus making their new dept/equity ratio (10/10). The new would incur 10% in various flotation costs. Compute their new weighted average cost of capital