Lifter company uses a capital structure consists of 40% debt and 60% equity. Its cost of equity is 20% and cost of debt is 10%. It is now considering de-leveraging and change to a 30% debt and 70% equity capital structure. What would be its new cost of equity if we assume the cost of debt remains the same? Assume no taxes. 16% 18.57% 19.29% Use the following information to calculate the value of the firm: EBIT = $1,000 = Tax (TC)= 35% Debt= $800 Cost of debt capital = 10% = Ro = 15% = $4,613.33 $6,946.67 $4,413.33