Modigliani and Miller's world of no taxes. Air Seattle is looking to change its capital structure from an all-equity firm to a levered firm with 60% debt and 40% equity. Air Seattle is a not-for-profit company and therefore pays no taxes. If the required rate on the assets (R) of Air Seattle is 23%, what is the current required cost of equity (when Air Seattle is an all-equity firm)? What is the new required cost of equity if the cost of debt is 14%