9. Consider a firm all equity financed whose beta is 1.4. The expected return on the market portfolio is 13% and the riskless asset is 13%. The firm decides to issue perpetual debt and that it represents 25% of the value of the firm. The cost of this debt will be 5%. Suppose you met MM (in the absence of taxes). What is the cost of equity after this operation? a) 20.2% b) 21.0% c) 23.6% d) None of the above 9. Consider a firm all equity financed whose beta is 1.4. The expected return on the market portfolio is 13% and the riskless asset is 13%. The firm decides to issue perpetual debt and that it represents 25% of the value of the firm. The cost of this debt will be 5%. Suppose you met MM (in the absence of taxes). What is the cost of equity after this operation? a) 20.2% b) 21.0% c) 23.6% d) None of the above