Modigliani and Miller's world of no taxes. Roxy Broadcasting, Inc. is currently a low-levered firm with a debt-to-equity ratio of 3/8. The company wants to increase its leverage to 8/3 for debt to equity. If the current return on assets is 14% and the cost of debt is 11%, what are the current and the new costs of equity if Roxy operates in a world of notaxes?