Now assume that Westerly reported a book value of equity of $2.5 billion and book value of debt of $1.5 billion at the start of the most recent year; the cash balance at the start of the year was $0.5 billion. Assuming that Westerly maintains its existing return on capital and reinvestment rate, what is the expected growth rate in operating income for Westerly?

Group of answer choices

8.4%

10.5%

12%

16.8%

None of the above