A firm has zero debt and an overall cost of capital of 14 percent. The firm is considering a new capital structure with 20 percent debt. The interest rate on the debt would be 7 percent and the corporate tax rate is 15 percent. What would be the cost of equity with the new capital structure?

Question 8 options:

	16.9%
	16.11%
	16.7%
	15.02%
	15.49%