An all-equity firm expects to incur depreciation expense of $0 and earn EBIT of $450,000 every year, forever. Its cost of equity is 11 percent, and its tax rate is 23 percent. The firm has no debt, but is considering a recapitalization. If the firm borrows $730,000 at 7 percent per year, and uses the funds to repurchases shares, what will be the cost of equity after the recapitalization? 11.68 percent 12.13 percent 11.71 percent 11.87 percent 11.93 percent