Assume the M\&M assumptions with taxes hold (no default, etc.). Firm U has a debt-equity ratio of zero and produces free cash flows equal to $5,000per year forever. The return on firm U 's assets equals 10%, the cost of debt is equal to 5%, and the tax rate equals 25%. An otherwise identical firm 0 has a debt-equity ratio of D/E=2. What is firm O 's cost of equity? 12.5% 15% 17.5% 20% None of the others