Assume a world with perfect and complete capital markets. A firm has a D/V ratio of 40%, a cost of equity of 12.8%, and a cost of debt of 4%. Risk free rate is 4%, and the market risk premium is 8%. Suppose the firm's D/V ratio rises to 60% (firm is raising debt to repurchase stock) What is the firm's new equity beta? (How does it compare to the old equity beta?) A. 1.50 B. 1.55 C. 1.60 D. 1.65 E. 1.70 What is the firm's new cost of equity? What are the old and new WACCs? How can you comment on your outcome