Chandeliers Corp. has no debt but can borrow at 6.4 percent. The firm’s WACC is currently 8.2 percent, and the tax rate is 35 percent.
A: If the firm converts to 35 percent debt, what is the company’s WACC? (Round your answer to 2 decimal places. (e.g., 32.16))
B: If the firm converts to 50 percent debt, what is the company’s WACC? (Round your answer to 2 decimal places. (e.g., 32.16))