$1$ point

Gudimetla Consulting has a beta of $1\mathrm{.}08$ and a cost of debt of $8$ percent. The current risk$-$free rate is $3\mathrm{.}2$ percent and the market rate of return is $11\mathrm{.}47$ percent. What is the company's cost of equity capital?

$12\mathrm{.}13$ percent

$16\mathrm{.}93$ percent

$8\mathrm{.}93$ percent

$20\mathrm{.}13$ percent

$16\mathrm{.}13$ percent

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