A firm has a debt-to-equity ratio of 1. Its (levered) cost of equity is 21%, and its cost of debt is 7%. If there were no taxes, what would be its cost of equity if the debt-to-equity ratio were zero? 12% 10% 8% 7% The beta of an all equity firm is 1.6. The beta of debt is 0.2.If the firm changes its capital structure to 60% debt and 40% equity using 10% debt financing, what will be the beta of the levered firm? (Assume no taxes.) 2.8 4.0 3.7