4) US Treasury Bond Rates (%) Income statement (thousands) S-year 1.00 Interest expense 500 10 year 2.00 EBIT 1,000 30-year 3.00 Pre-tax income 500 Income tax expense 125 Equity Statistics Market cap (billions) 30 Balance sheet (thousands) Beta 2 Net debt 10,000 Market risk premium 5% Total debt 12,000 Based on the above data, the cost of equity is closest to: A) 10% B) 8% C) 11% D) 12%