Analysts want to estimate the cost of equity for TAR Corporation to use later in a short-term (1-year) project valuation analysis. They believe that a beta based on analyses of recent past returns is appropriate to assess TAR's risk level in the future. They found from recent stock return analyses that beta equals to 2.34. The historical market risk premium is 6.90%. Treasury Yield 1-year T-STRIPS Yield 2-year T-STRIPS Yield 10-year T-STRIPS Yield How much is the cost of equity for TAR Corp? 0.25% 1.45% 2.50%