Urgent! Please help as soon as you can :)

Currently, the Fotopoulos Corporation's balance sheet is as follows: Assets Debt Assets $9 billion Debt $3 billion Common equity $6 billion Total assets $9 billion Total debt & common equity $9 billion The book value of the company (both debt and common equity) equals its market value (both debt and common equity). Furthermore, the company has determined the following information: The company estimates that its levered beta is 1.7. The risk-free rate is 4%. The market risk premium is 8%. The company's tax rate is 41%. The Fotopoulos Corporation is considering a recapitalization. The proposed plan is to issue $2 billion worth of debt and to use the money to repurchase $2 billion worth of common stock. As a result of this recapitalization, the firm's size will not change. Assuming that the beta of the firm's debt is zero, what will be the company's new cost of common equity if it proceeds with the recapitalization? (Hint: You will need to figure out a new beta for equity in an environment with taxes.) O a. 27.26% O b. 29.82% O c. 22.25% O d. 24.94% O e. 30.68%