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Your company is financed 30%withrisklessdebt with a yield of 6% and 70% with equitywith a cost of 14%. The corporate tax rate is 30%. a.

Your company is financed 30%withrisklessdebt with a yield of 6% and 70% with equitywith a cost of 14%. The corporate tax rate is 30%.

a. What is the company's WACC at its existing capital structure?(5 points)

b. What would be the new WACCif it changes to being 40% debt financed? (5 points)

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