ents modification We commented upon to show the nature of the D Question 16 1 pts Drive 65 Tesla Inc, a U.S. company, is considering changing its capital structure. The company has debt and equity in its capital structure and the current D/E ratio is 0.8, the current weighted average cost of capital of Tesla is 11.14% pa. The current before-tax cost of debt capital for Tesla is 10% pa, the current cost of equity is 14.45% pa. and current equity beta is 1.35. The risk-free rate and market risk premium are 5% pa, and 7% pa respectively. The corporate tax rate is 30%. If the company switches to a capital structure with 100% equity, which of the following is closest to the new weighted average cost of capital of Testa Inc (using the approach covered in the lecturel? Capture 9.25%. 11.14% pa 1205% pa OB.00% pa 11.06%