Assume that each company is a candidate for a potential leveraged buyout. The buyers intend to implement a capital structure that has 75% debt (with a pretax borrowing cost of 8.0% ) and 25% common equity. Project the new cost of equity capital for Whirlpool. Unlevered Market beta =1.445. Risk-free rate =3.5% and market risk premium is 5%. New Levered Market Beta = Unlevered Market Beta [1+(1 - Income Tax Rate ) (New Market Value of Debt/New Market Value of Equity)] Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an an a 8.59% b 12.13% c 24.7%