Toms Trucking, Inc. (TTI) currently has a D/V ratio of 10% and is considering increasing it to 30%. At its current capital structure, rE = 12% and rD = 5%. For simplicity, assume that rD will be roughly the same at the new leverage level. TTI faces a corporate tax rate of 35%. Calculate the after-tax WACC before and after the recapitalization under the following assumptions: 1) TTI will adjust their debt level going forward to maintain a 30% D/V ratio. 2) After the debt issue, TTI will keep their debt at a fixed level going forward (i.e. it has a fixed level of debt both before and after).