PART B: SHORT PROBLEMS (30 Marks) Problem 1 (12 marks) (a). NIT is going to adjust its current Debt/Equity ratio from 1.5 to 2. Using the information in the tat- below, calculate the cost of equity of NIT after the capital restructure. If D/E=1.5 If D/E=2 6.5% Cost of debt 6% 2 12% Cost of equity 30% 30% Tax rate