Question 16 Not yet answered Marked out of 5.00 The market value of Rumbers Inc is currently 70.0% in equity and 30.0% in debt. An analyst finds the following information about the firm: Its current WACC is 13.5% marginal corporate tax rate is 34.0% the yield to maturity on its outstanding bonds is 8.2% and is expected to remain constant the risk-free rate is 3.0%, and the expected return on the market portfolio is 9.5% P Flag question Rumbers proposes to change its capital structure through a debt for equity swap. Under this proposal its new debt to equity ratio will be 50.0% over 50.0%. a) What is the current equity cost of capital? % (Give answer as % to 2 decimal places) % (Give b) If the firm changes its capital structure as proposed, what would be the new equity cost of capital? answer as % to 2 decimal places)