The current capital structure of Heilo Inc. consists of 20% debt and 80% equity with their debt having a 5% yield to maturity. If the current beta of the firm is 0.95, the risk- free rate of interest is 2.5% and the market risk premium is estimated at 7.9%, what is their current WACC? Heilo has a marginal tax rate of 40%. O 10% O 12.3% O 8.6% O 9% Consider the problem above. Heilo Inc. is considering restructuring its financing and increasing the use of debt to 40%. That change will result in a 1% increase in the yield to maturity of borrowed capital and would also affect equity financing costs. What would the company's new cost of equity be if it adopted the proposed change in its capital structure? (Hint: first find the firm's unlevered beta and then use it to compute the beta under the proposed new capital structure) O 13% O 10% O 7% O 11.6% O 14.5% In the problem above, what would Heilo's new WACC be ifit adopted the proposed change in capital structure? O 11.2% O 10.6% O 9% O 9.5% O 8.4%