Nike, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 10 percent and its pretax cost of debt is 6%. The tax rate is 24%. What are the causes of the changes in the...

Nike, Inc., has a debt-equity ratio of 2.3.  The firm's weighted average cost of capital is 10 percent and its pretax cost of debt is 6%.  The tax rate is 24%.

What are the causes of the changes in the levered cost of equity capital and the resultant weighted-average cost of capital, describe what this means to the CFO of the firm.