Wentworth Industries is $100$ percent equity financed. Its current beta is $1\mathrm{.}1.$ The expected market rate of return is $14$ percent and the risk$-$free rate is $11$ percent. Round your answers to two decimal places.

Calculate Wentworth$$s cost of equity.

$\%$

If Wentworth changes its capital structure to $10$ percent debt, it estimates that its beta will increase to $1\mathrm{.}3.$ The after$-$tax cost of debt will be $5$ percent. Should Wentworth make the capital structure change?

Based on the weighted cost of capital of

$\%,$ the capital structure

$-$Select$-$

changed.