29. XYZ Co. has an unlevered cost of capital of 14%, a tax rate of 21% percent, and expected earnings before interest and taxes of $1,000,000 (in perpetuity). The company has outstanding bonds with a market value of $2 million, and a yield of 7%. What is the cost of equity?

Multiple Choice

• 12.61%

• 9.93%

• 10.04%

• 17.04%

• none of the above