Crown Inc. is a pure equity firm. Firm decides to recapitalizeto take advantage of tax shield.Firm's marginal tax rate is 40%.After a substantial borrowing, firm's cost of equity goes up to 10%.Assuming that firm'sasset beta is 0.9, risk free rate is 2%, and EMRP is 5%,firm'spost recapitalizationdebt to capital ratio is closest to

Group of answer choices

42%

129%

72%

56%

None of the answers is correct