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Hastin Inc. has a WACC of 16.4%. Hastin is evaluating a capital structure change from a D/E ratio of 1 to a D/E ratio of

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Hastin Inc. has a WACC of 16.4%. Hastin is evaluating a capital structure change from a D/E ratio of 1 to a D/E ratio of 2.0. With the change, Hastin's new beta will be 1.5 . If treasury bills yield 3% and the expected market return is 11.0% and Hastin pays no taxes, what is the new required return for debt? 15.70% 16.40% 17.10% 14.20%

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