Divided Walls Construction (DWC) has deter- mined that the yield to maturity (YTM) on new bonds is 5 percent, its cost of retained earnings is 8 percent, and its cost of new common stock is 11 percent. If DWCs capital structure consists of 40 percent debt and 60 percent common eq- uity, what is its weighted average cost of capital (WACC) if it (a) does not have to issue new stock to raise additional funds and (b) must issue new stock to raise additional funds? DWCs marginal tax rate is 35 percent.