19.3 The management of Samata Company, subscribing to the net operating income ap- proach, believes that its cost of debt and overall cost of capital will remain at 8 per- cent and 12 percent, respectively. If the equity shareholders of the firm demand a return of 20 percent, what should be the proportion of debt and equity in the firm's capital structure? Assume that there are no taxes. 19.4 The management of a firm believes that the cost of equity and debt for different proportions of equity and debt in the capital structure are as follows: