Modigliani and Miller's world of no taxes Roxy Broadcasting, Inc. is currently a low-levered firm with a debt-to-equity ratio of 1/3. The company wants to increase its leverage to 3/1 for debt to equity. If the current return on assets is 10% 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? GE What is the current cost of equity it Roxy operates in a world of no taxes? 1% (Round to the nearest whole percent.)