with more debt (Scenario under Consideration). If the company decioes to hcrease its level of debt to 20%, it will likely have a bond rating of BBB. below. Based on the following information, please answer the questions Current Capital Structure Debt Equity 100% stimated Bond Rating Default spread based on bond rating 2.0% 3.588 Market Risk Premium MRP) Current Risk Free Rate (Treasury Bondl) 20.0% a. Calculate the weighted average cost of capital under the current capital structure of 100% equity (2 pts) b. Calculate the estimated weighted average cost of capital under the new capital structure being considered (20% debt, 80% equity). (3pts) 20 % What capital structure would you recommend? Please base the recommendation on the analysis above PLUS all other relevant factors that you believe a company should consider when setting a target capital structure (1pts)? c. wou Id