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QUESTION 11 4.55 points Jim's Jelly Company is currently an all-equity firm with 3 million...

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QUESTION 11 4.55 points Jim's Jelly Company is currently an all-equity firm with 3 million shares of outstanding equity and a stock price of $20 per share. Its unlevered cost of equity is 12%. The firm is contemplating a restructuring that would involve issuing $20 million in debt and using all the proceeds to repurchase outstanding equity. The debt would have an interest rate of 8% and equity would be repurchased at $20 per share. After the restructuring, what will Jim's cost of equity be? Assume that markets are perfect (no taxes, no bankruptcy, etc.). 11% 14% 12% 13% None of the other answer choices are correct. 13.33%

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