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Thyssen Corporation is currently a levered firm with a debt - equity ratio of 0 . 3 5 and a pretax cost of debt of

Thyssen Corporation is currently a levered firm with a debt-equity ratio of 0.35 and a pretax cost of debt of 6.2%. The firm has a cost of equity of 12.80%. The firm is considering switching to an all equity firm. What will the firm's cost of equity be if it makes the switch? Ignore taxes.
A 10.88%
B 10.95%
C 11.02%
D 11.09%
E 11.16%

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