Eastman Chemical presently has a D/E ratio of 1. Eastman Chemical's cost of debt is 4 percent. The firm's WACC is currently is 8 percent and imagine that there is no corporate tax. What is Eastman Chemical's cost of equity? Hint: The no tax case is Case 1, where R = RA+ (RA - Rp)(D/E). 12% 7% 89 1395