In this question, we assume perfect capital markets. Magna International is an all-equity firm with an equity cost of capital of 15%. It is considering a leveraged recapitalization in which it would borrow and repurchase existing shares. (1) Suppose Magna borrows to the point that its market value debt-equity ratio is 0.50 . With this amount of debt, the debt cost of capital is 6%. What will be Magna's equity cost of capital after this transaction? (2) Suppose instead Magna borrows to the point that its market value debt-equity ratio is 1.50 . With this amount of debt, the debt cost of capital is 9%. What will be Magna's equity cost of capital in this case