The director of capital budgeting for see-saw inc., manufacturers of playground equipment, is considering a plan to expand production facilities in order to meet an increase in demand. he estimates that this expansion will produce a rate of return of 11%. the firm's target capital structure calls for a debt/equity ratio of 0.8. see-saw currently has a bond issue outstanding that will mature in 25 years and has a 7% annual coupon rate. the bonds are currently selling for $804. the firm has maintained a constant growth rate of 6%. see-saw's next expected dividend is $2 (d1), its current stock price is $40, and its tax rate is 40%. should it undertake the expansio? n calculate the cost of bonds. calculate the cost of equity. calculate the wacc