4. Hardy Boys Industry is currently all-equity financed and its cost of equity capital is 11%. Hardy Boys is considering a leveraged recapitalization, under which it would issue bonds and use the proceeds from the bond issue to repurchase common stock. If Hardy Boys issues bonds to the point where its debt-equity ratio is .5, the cost of debt capital will be 5%. In this case, what will be the cost of equity capital? Assume perfect markets