Compute the Cost of Equity using the CAPM method.

State your answer in percentage form (without the percent sign) to the nearest basis point. Do not round until the end.

23.4567% would be answered as 23.46 as an example.

Millions Millions Notational Rate Effective Yield to Maturity Notational Value Fair Value (Millions of dollars) Interest Bearing Debt Schedule Notes-$1,250 million of 3.900% due 2033 Notes $759 million of 5.200% due 2041 Debentures-$500 million of 2.600% due 2022 Debentures $1,000 million of 3.400% due 2024 Debentures $193 million of 6.625% due 2028 Debentures $242 million of 7.300% due 2031 Debentures $307 million of 5.300% due 2035 Debentures-$460 million of 6.050% due 2036 Debentures-$160 million of 6.950% due 2042 Debentures-$1,722 million of 3.803% due 2042 Debentures-$500 million of 4.300% due 2044 Debentures-$500 million of 4.750% due 2064 Debentures $746 million of 7.375% due 2097 3.900% 5.200% 2.600% 3.400% 6.625% 7.300% 5.300% 6.050% 6.950% 3.803% 4.300% 4.750% 7.375% 4.010% 5.270% 2.700% 3.460% 6.680% 7.380% 8.640% 6.120% 7.020% 6.390% 4.390% 4.810% 7.510% 1,250 759 500 1,000 193 242 307 460 160 1,000 500 500 746 1,130 751 498 982 192 240 218 456 158 824 493 494 641 Market Value of Equity Book Value of Equity Millions 9,954.00 4,039.00 Beta Rf mrp 1.45 3.25% 7.10% Tax Rate 22.40% Activate y