2. Secretive Inc. has operations and capital structure that are hard to evaluate due to the secretive nature of its business, finances and clientele. The com- pany's spokesperson has recently announced that the expected return on the company's assets are 15% and the return on its debt is 10%. You have hired the services of an expert analyst that has informed you that after extensive work they have been able to ascertain that the company's debt to equity ratio is two to one, and that it's equity beta is 1.5. Assuming the risk free rate is 3% and the market risk premium is 8%, and assuming you have complete trust in the analyst you hired and the results he reported to you, is the company's spokesperson providing truthful information. That is, is the company's cost of capital indeed 15% and is the expected return on it's debt 10%