8. Myoptic Optical is a levered no-growth firm with $1,400,000 debt outstanding. Firm value is $2,277,500. The firm's owner is currently contemplating whether to reduce its debt ratio to a more reasonable 40%. The firm will do so by issuing stock and retiring an equal amount of debt. The unlevered cost of equity is 16%, and the cost of debt is 6%. The firm currently has 35,100 shares outstanding and the firm's tax rate is 35%. What is Myoptic Optical's current cost of levered equity? A. 26.37% B. 12.56% C. 16.00% 9. Continuing the previous problem, what will be the new value of Myoptic Optical after the recapitalization to a 40% debt ratio (B/V) is announced? A. $2,277,500 B. $1,366,500 C. $2,078,488 10. Continuing the previous problem, what will be Myoptic Optical's new cost of levered equity after the recapitalization? A. 18.60% B. 20.33% C. 16.00%