Assume that capital markets are perfect. A firm finances its operations via $60 million in stock with a required return of 15% and $40 million in bonds at 8%. Assume the company decides to issue an additional $10 million bonds and use the proceeds to retire $10 million worth of equity, (a) what would happen to the firm’s WACC? (4 points)(b) What would happen to the required return on the company’s stock?