The Hamster Company has the following capital structure and financing costs. Unsecured long-term debt Secured long-term debt Ordinary share capital Total liabilities and equity ii. Amount $50,000 $60,000 $140,000 $250,000 What is the company's Weighted Average Cost of Capital (WACC)? Round your answer to two decimal places. (3 marks) After-tax cost 10% 8% 15% (b) Complete the following sentences by choosing the appropriate term in the brackets: The trade-off theory states that managers will 1. (increase/decrease) the amount of (debt/equity) to find the optimum (capital/debt) structure. Retained earnings (are /are not) a source of funds for investment and (represent/do not necessarily represent) cash.