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Modigliani and Miller's world of no taxes. Roxy Broadcasting, Inc. is currently a low-levered firm with a debt-to-equity ratio of 2/5. The company wants to

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Modigliani and Miller's world of no taxes. Roxy Broadcasting, Inc. is currently a low-levered firm with a debt-to-equity ratio of 2/5. The company wants to increase its leverage to 5/2 for debt to equity. If the current return on assets is 11% and the cost of debt is 8%, what are the current and the new costs of equity if Roxy operates in a world of no taxes

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