Your technology startup has recently stabilized after a period of rapid growth. Investors value your all-equity firm at $100 million, and your cost of equity is 24%. You are doing so well that you are considering going through an initial public offering (IPO) to raise lots of money from equity investors. In the near term, however, you are running out of cash and need to raise some money to pay your employees. You are considering going to the bank to get a loan and bring your D/E ratio to 5%. You plan to keep the amount of debt constant forever you will always keep a CONSTANT LEVEL OF DEBT no matter how well the assets of the firm perform. The cost of debt and interest rate on the debt would be 6%. How does the cost of your equity change if you raise the debt? How does your WACC change? Assume a tax rate of 25%.

Show all your steps clearly.