Shirley Inc. is an all-equity company recently founded, and you are required to estimate its equity return. Simple Corp. is a competitor with assets very similar to those of Shirley. Simple's return on equity is 8.84%, its debt-to-equity ratio is 1 and it is kept constant. The interest rate paid by Simple is 1.50% and the corporate tax rate is 23%. What is the return on equity for Shirley? (a) 4.02%(b) 4.23%(c) 4.93%(d) 5.17% answer is D