McCain Enterprises is thinking about changing its permanent capital structure from 40% currently available: Cost of debt (RRR of creditors) is 6%. Tax rate is 40%. Required return on equity (cost o RRR on equity would have been 18.00%The risk-free rate is 3%. If the company switches to 60 debt the cost of debt is estimated at 9%. 2. debt to asset ratio to 60% debt ratio. The following information s r equity) given the 40% tax rate is 16.08%. If taxes were nonexistent, the a. Calculate the opportunity cost of capital (required return on assets, RA) b. Calculate the current WACC. c. Calculate the cost of equity after the switch to 60% debt. d. Calculate the WACC after the switch to 60% debt. McCain Enterprises is thinking about changing its permanent capital structure from 40% currently available: Cost of debt (RRR of creditors) is 6%. Tax rate is 40%. Required return on equity (cost o RRR on equity would have been 18.00%The risk-free rate is 3%. If the company switches to 60 debt the cost of debt is estimated at 9%. 2. debt to asset ratio to 60% debt ratio. The following information s r equity) given the 40% tax rate is 16.08%. If taxes were nonexistent, the a. Calculate the opportunity cost of capital (required return on assets, RA) b. Calculate the current WACC. c. Calculate the cost of equity after the switch to 60% debt. d. Calculate the WACC after the switch to 60% debt