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Hartford Mining has 70 million shares that are currently trading for $ 8 per share...

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Finance

Hartford Mining has 70 million shares that are currently trading for $ 8 per share and $ 60 million worth of debt. The debt is risk free and has an interest rate of 5%, and the expected return of Hartford stock is 12%. Suppose a mining strike causes the price of Hartford stock to fall 20% to $ 6.40 per share. The value of the risk-free debt is unchanged. Assuming there are no taxes and the risk(unlevered beta) of Hartford's assets is unchanged, what happens to Hartford's equity cost of capital?
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Part 1
Equity cost of capital is
enter your response here%.(Round to two decimal places.)

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