You are given the following information for Lorelei Motorwerke Long-Term Debt Outstanding Current Yield to Maturity rD Number of Shares of Common Stock Price per share Book Value per Share Expected Rate of Return on Stock rE 200000 696 10000 $40 $25 15% Calculate Loreles weighted-average cost of capital (assuming that the firm pays no taxes) Suppose Lorelei's stock price falls to $25 per share due to declining profits, but business risk is unchanged What is the weighted-average cost of capital? What is the new value of rE