polats) XYZ is currently an all-equity firm operating in a perfect capital market. The expected or XYZ is 12% XYZ is considering a leveraged recapitalization, that is, borrowing funds to is shares. Assume after the leveraged recapitalization XYZ would have a debt-equity ratio of asset 0.50. The debt cost ofcapital would be 8% would be the expected return on XYz's equity after the leveraged capitalization? (b) Some senior manager of XYZ believes that in order to maximize shareholder value XYZ should choose a capital structure that could make equity yield the highest expected return. What do you think