Akeya Equipment has 6 million shares of common stock outstanding. The common stock has a beta of 1.2 and sells for $50 a share. The U.S. Treasury bill is yielding 2 percent that is used for the risk-free rate and the return on the market is 12 percent, which indicates that the market risk premium is 10 percent. What is the cost of common equity (R_E)?

	1.	7.50 percent
	2.	10.00 percent
	3.	14.00 percent
	4.	15.00 percent
	5.	18.13 percent