Bohannon Corporation's common stock has a beta of 1.40. Assume the risk-free rate is 4.3 percent and the expected return on the market is 10.0 percent. Required: What is the company's cost of equity capital? 12.90%13.07%18.30%12.28%16.02% Kyle Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Kyle would have 750,000 shares of stock outstanding. Under Plan II, there would be 500,000 shares of stock outstanding and $8.50 million in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes. Requirement 2: (a)Assume that EBIT is $2.8 million, compute the EPS for Plan I. $3.75$3.24$3.73$4.24$3.07 (b)Assume that EBIT is $2.8 million, compute the EPS for Plan II. $3.73$3.75$3.24$3.07$4.24