Question 12 2 points Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25 % debt and 75 % equity. The CFO believes the firm should use more debt, but the CEO is reluctant to increase the debt ratio. The risk-free rate, rRF. is 5.0% , the market risk premium, RPM, is 6.0 % , and the firm Save Answer 40%. Currently, the cost of equity, fs, is 11.5% as determined by the CAPM. What would be the estimated cost of equity if the firm used 60 % debt? (Hint: You must finst find tax rate is the current beta and then the unlevered beta to solve the problem.) 10.95% 11.91% 15.29% 14.07% 12.94% 512R A Movinn.to another question will save this resnonse. 6/29/2 earch hp tho fo 144 16 4- & % 7