Bayer AG wants to estimate its cost of equity. Its bond yield to maturity is 5%. If inflation is 2% and the equity market risk premium is 5%, what is an estimated cost of equity for Bayer AG?

A. 12% B. 7% C.10% D. 8% E. Not enough info

Which of the following are likely relative cost of capital for a firm

Firm	Cost of Debt	Cost of Preferred Stock	Cost of equity
L	5%	8%	6%
T	3%	5%	8%
Z	8%	8%	8%
S	10%	8%	6%

1) Firm L

2) Firm Z

3) Firm S

4) Firm T

5) Not enough info