Currently, a company is financed with 40% equity and debt. The debe consists of 15 year $1.000 face valoe bonds that pay semi-annual interest payments based on an annual coupon Tate of 7%. The market price of the firm's bonds is currently $105. Further, the company has a beta of 1A. The expected retrom on the market is expected to be 14% while the risk free rate is 4 The marginal tax rate is 10% What is the company's cost of equity? 10.8% 14.01 142 18.09