6. Assume a Modigliani and Miller (MM) world with perfect capital markets. Amtar Ltd starts out as an all-equity firm whose shares have an expected return of 12%. Amtar then does a leveraged recapitalization, issuing debt and repurchasing stock, until its debt- equity ratio is 0.6. Due to the increased risk after the leveraged recapitalization, shareholders now expected a return of 18%. Amtar's debt is risk-free. Amtar's cost of debt after the leveraged recapitalization is closest to: A) 8.0% B) 8.5% C) 3.0% D) 2.0%