* Your answer is incorrect. Suppose the cost of capital of the Carla Vista Company is 11 percent. If Carla Vista has a capital structure that is 50 percent debt and 50 percent equity, its before-tax cost of debt is 6 percent. and its marginal tax rate is 20 percent, then its cost of equity capital is closest to: 15.0 percent 11.0 percent. 17.0 percent. 13.0 percent eTextbook and Media Attempts: 2 of 3 used