Question: 4. Your boss is stumped. She has completely forgotten learning about the second proposition of Modigliani-Miller and needs your help solving a problem by the

4. Your boss is stumped. She has completely forgotten learning about the second proposition of Modigliani-Miller and needs your help solving a problem by the end of the day or she's fired. "Smart recent graduate, I need your help solving the firm's equity cost of capital but I don't know how"! She tells you that the firm has assets with a market value of $100,000, half equity, half debt, with unlevered cost of equity of 10%, and a cost of their debt of 3%. What is the equity cost of capital for this firm

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