YULTIVITY A firm increases its debt ratio from 10% to 50%. Assuming a tax rate of 0%, what impact will this have on the firm's WACC? The WACC will remain flat The WACC will increase The WACC will decrease Not enough information to answer QUESTION 5 You open a small clothing store using your own funds to source equity capital. You are trying to estimate an appropriate cost of capital and find the following information: 2.5% 5.0% A. 1 year T-bond: 8. Mortgage Rates C. 5&P 500 Etrett D. Retail Industry Efret 9.5% 13.0% Which is the best range estimate for you business's cost of capital? B.0% - 11.0% 3.0% -6.0% 10% - 135 13% -16