Company ABC has a current cost of equity of 10%. The current capital structure is 20% debt and 40% equity. They are looking to recapitalize to 40% debt and 60% equity. Given that the risk free rate is 3% and the market risk premium is 5%, what would their new cost of equity be? Assume a tax rate of 30%. 9.0% 10.5% 11.0% None of the above