Moose Pastures Inc (MPI) has no debt and operates in an economy with no taxes or bankruptcy risk. MPI has an unlevered cost of equity of 12%. The average firm in its industry has a D/E ratio of 1 (50% debt and 50% equity.) If MPI aligned its capital structure with the industry average, what would its cost of equity be? Assume the cost of debt is 6%. 12% 16.45% 6% 24% 18%