Assume that Treasury Bills currently yield 4.5% and the market risk premium is 4% (i.e. expected market return is 8.5%). If the common stock of Hughley Corp. has a beta of 1.42, which of the following statements is true?

a. Hughleys cost of equity financing (from common stock) is 4.8%

b. Hughleys after-tax cost of equity financing (from common stock) is 6.6%.

c. Hughleys stock is not as volatile as the overall market.

d. Hughleys cost of equity financing (from common stock) is 10.2%

e. None of the above statements is true.