A company has common stock with a total current market value of 1,000 million and debt with current market value of 500 million. Given these market values, the shareholders' required rate of return on the company's stock is 14%, and the rate of return on the debtis 4% return. Suppose the company operates in well- functioning capital markets and issues 500 million of new stock to buy back all its outstanding debt. What is shareholders' required return on the stock after this transaction, Le, once the company no longer has any debt and is unlevered? Rounded to one decimal point, which ONE of the following answers is CORRECT? 14.3% 12.0% 11.2% (Tick this option if you think that none of the listed figures is correct.) 10.7%