Question: -) Company B's current equity beta, debt beta, and cost of equity are 1.6, 1.0 and 12 percent, respectively. The current and expected future) tax

 -) Company B's current equity beta, debt beta, and cost of

-) Company B's current equity beta, debt beta, and cost of equity are 1.6, 1.0 and 12 percent, respectively. The current and expected future) tax rate and risk-free rate are 35 percent and 4 percent, respectively. Company B currently has a net debt- to-equity ratio of 50 percent. The company plans to increase its net debt-to-equity ratio to 100 percent (leaving its debt beta unchanged). After this increase in leverage, company B's cost of equity will be

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