Question: hand calculations please Problem #1 (5 marks) Green Island Construction has a cost of equity of 11% and a cost of debt of 7%. The

hand calculations please hand calculations please Problem #1 (5 marks) Green Island Construction has a

Problem #1 (5 marks) Green Island Construction has a cost of equity of 11% and a cost of debt of 7%. The current debt-equity ratio is 0.60. What will the cost of equity be if the target debt to equity ratio is increased to 2? Assume there is no tax and no cost of financial distress and general M&M assumptions apply

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