Given the following information: )ebt if capital for the unlevered firm. Then determine the return on equity, the return on debt, and the Assuming perfect capital markets, determine the average cost of capital for the unlevered firm. Then determine the return on equity, the return on debt, and the average cost of capital for the levered firm. What do you think will happend to the return on equity, return on debt, and the average cost of capital for the levered firm is the ratio of debt to equity is increased. Given the following information: )ebt if capital for the unlevered firm. Then determine the return on equity, the return on debt, and the Assuming perfect capital markets, determine the average cost of capital for the unlevered firm. Then determine the return on equity, the return on debt, and the average cost of capital for the levered firm. What do you think will happend to the return on equity, return on debt, and the average cost of capital for the levered firm is the ratio of debt to equity is increased