Whispering Pines Incorporated is all-equity-financed. The expected rate of return on the company's shares is 12%....

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Whispering Pines Incorporated is all-equity-financed. The expected rate of return on the company's shares is 12%. a. What is the opportunity cost of capital for an average-risk Whispering Pines investment? b. Suppose the company issues debt, repurchases shares, and moves to a 30% debt-to-value ratio (~ = 0.30). What will be the company's weighted-average cost of capital at the new capital structure? The borrowing rate is 7.5% and the tax rate is 21%. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is not complete. a. Opportunity cost of capital b. Weighted-average cost of capital 12 % % Whispering Pines Incorporated is all-equity-financed. The expected rate of return on the company's shares is 12%. a. What is the opportunity cost of capital for an average-risk Whispering Pines investment? b. Suppose the company issues debt, repurchases shares, and moves to a 30% debt-to-value ratio (~ = 0.30). What will be the company's weighted-average cost of capital at the new capital structure? The borrowing rate is 7.5% and the tax rate is 21%. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is not complete. a. Opportunity cost of capital b. Weighted-average cost of capital 12 % %