Your company currently has 60% equity and 40% debt capital structure. At the current state, it is estimated that your companys equity beta is 1.2 and debt beta is 0.8.

- If you would like to restructure your capital to 50% debt and 50% equity, what would be the equity beta of your firm?

- If the risk-free rate is 3% and the market return is 15%, what would be your equity cost of capital under the new capital structure?