Part II Question 2 b) For Firm B, the cost of equity is 12% and the cost of debt is 6%, assuming there is no corporate tax, what is the cost of equity for firm A? Compare the cost of equity for firm A and firm B and the difference if any. ( 4 points) Company A and B differ ONLY in their capital structure. A is financed 20% debt and B0x equity and B is financed 10% debt and 900 equity. The debt of both companles is risk-free. Notations Firm Value: firm A= firm B=V Profit : firm A= firm B= profit Firm A debt value : D(A) Firm B debt value: D(B) isk free rate of return : ri