11. The common stock of Bywater, Inc. has 16 percent less systematic risk than the overall market. Currently, the market risk premium is 8.6 percent while the U.S. Treasury bill is yielding 5.2 percent. What is Bywater, Inc.'s cost of equity? a. 8.06 percent b. 9.38 percent c. 10.78 percent d. 12.42 percent e. 13.80 percent