Cummingham Corporation currently has 30% debt in its capital structure: however, its new CFO is considering changing the capital structure to 45% debt. The company has 7% annual coupon bonds outstanding that have a before-tax yield to maturity of 5%. Additional financial information is given below. Risk-free rate, r_RF 2.00% Tax rate, T 40% Market risk premium (r_M - r_RF) 5.50% Current beta, b_L 1.2 a. What is the company's WACC at its existing 30% debt ratio? b. What would be the company's levered beta if it increased its debt ratio to 45%? Carry your answer out to 4 decimal places.