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Lakeside Resort is a public traded company with a debt-equity ratio of 0.6. Its cost of debt after tax is 7% and cost of equity

Lakeside Resort is a public traded company with a debt-equity ratio of 0.6. Its cost of debt after tax is 7% and cost of equity is 11%. What the cost of equity for Lakeside Resort would be if its target capital structure were 50% debt and 50% equity? A. 11.5% B. 12.0% C. 9.5% D. 11.0% E. 10.5%

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