Blumberg Inc. has an unlevered beta of 1.10. The firm currently has no debt, but is considering changing its capital structure to be 40% debt and 60% equity. Its corporate tax rate is 40%, r(RF) = 5% and the market risk premium is 4%. What is Blumberg's cost of equity? (Hint: Use the Hamada Equation and CAPM) please show how you get the answer

		A. 10.76%
		B. 11.36%
		C. 10.56%
		D. 11.16%
		E. 10.96%