WestGas Conveyance, Inc. WostGas Conveyance, Inc,, is a large U.S natural gas pipeline compary that wants to raise $120 milion to finance expansion. Wostbas warts a captar structure that is 50% debt and 50% equity. Its corporate combined federal and state income tax rate is 38%. WestGas finds that it can finance in the domestic U.S. capitai market at the rates listed in the popup. window: [7]. Both debt and equily would have to be sold in mutiples of $20 milion, and these cost figures show the component costs, each, of debt and equity it rained 50% by debt and 50 . by. equity. A London bank advises WestGas that U.S. dollars could be raised in Europe at the following costs, also in multiples of $20 millon, whle maintaining the 50150 capital stucture. Each increment of cost would be influenced by the total amount of capial rased. That is, I WeshGas first borrowed 520 milion in the European market at B\% and matched this with an additional 520 milion of equity, additional dobt beyond this amount would cost 11% in the Uniled States and 10% in Europe. The same relationship holds for equity francing a. Calculote the lowest average cost of copital for each increment of $10 milion of new capital. where WestGas taises $20 milion in the equity manket and an addicional 520 in she dabt micket at the same time. b. If WestGas plans an expansion of colly $60 milico, how should that expansion be financed? c. What will be the weighted average cost of capital for the expansion? is (Round to two decimal places.) What is the lewest average cost of capital for the second $40 milion of new eapital? (Round to two decimal places) What is the lowest average cost of capital for the third 540 milion of new capital? (Round to two decimal places.) What will be the weighted average cost of captal for the $120 milion expansion? (Round to two decimal places) (Round to two decimal places.) What will be the weighted average cost of captal for the $60 milion expansion? Data table (Click on the icon to import the table into a spreadsheet.)