Crown Inc. is a pure equity firm. Firm decides to recapitalize to take advantage of tax shield. Firms marginal tax rate is 40%. After a substantial borrowing, firms cost of equity goes up to 10%. Assuming that firms asset beta is 0.9, risk free rate is 2%, and EMRP is 5%, firms post recapitalization debt ratio is closest to 56% 72% None of the above 42% 129%