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Whispering Pines, Inc., is all-equity-financed. The expected rate of return on the company's shares is...

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Accounting

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Whispering Pines, Inc., is all-equity-financed. The expected rate of return on the company's shares is 9.75%. a. What is the opportunity cost of capital for an average-risk Whispering Pines investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of capital b. Suppose the company issues debt repurchases shares, and moves to a 23% debt to value ratio 6 -23). what will be the company's weighted average cost o capital at the new capital structure? The borrowing rate is 5.25% and the tax rate is 40% (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Weighted-average cost of capital

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