Question: A company's current E is $50 billion and D is $150 billion. The company's current stock beta is 1.5. Assume that the risk-free rate is

A company's current E is $50 billion and D is $150 billion. The company's current stock beta is 1.5. Assume that the risk-free rate is 5% and the expected market rate of return is 10%. Now the company issues another $10 billion of debt and uses it to repurchase equity. What is the companys new cost of equity in percentage? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g 12.345%)

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