A company's common stock has a market value of $22.67 per share and its last. dividend was $1.42 per share. The stock's beta is 1.1 , the tax rate is 30%, and the risk-free interest rate is 4.1% per year. The yield to maturity for the company's longterm debt is 8.7% per year. If the riskiness of the company's equity requires that it provide a risk premium of 4.0% per year over the yield on its long-term debt, what is the company's annual cost of equity financing? 1) 12.7% 2) 12.1% 3) 14.3% 4) 13.8% 5) 13.2%