Modigliani and Miller's world of no taxes. Roxy Broadcasting, Inc. is currently a low-levered firm with a debt-to-equity ratio of 4/7. The company wants to increase its leverage to 7/4 for debt to equity. If the current return on assets is 12% and the cost of debt is 9%, what are the current and the new costs of equity if Roxy operates in a world of no taxes? What is the current cost of equity if Roxy operates in a world of no taxes? % (Round to the nearest whole percent.)