Path: P Words:0 QUESTION 32 Etisalat is considering making a change to its capital structure to reduce its cost of capital and increase firm value. Right now, Etisalat has a capital structure that consists of 20% debt and 80% equity, based on market values. The risk free rate is 6% and the market risk premium is 5%. Currently the company's cost of equity, which is based on the CAPM, is 12% and its tax rates is 40% What would be Etisalat's estimated cost of equity if it were to change its capital structure to 50% debt and 50% equity (Hint: Levered beta = unlevered beta[1+ (1-t)(D/E)) Arial 3 (12pt) TT TT Paragraph %DOQ fx Mashups - ENTHLESS CG Sa Click Save and Submit to save and submit. Click Save All Answers to save all answers. MACBOOK Pro