"Debt is riskier than equity, and therefore only higher returns on debt are required in order to encourage investors," True False QUESTION 16 "ABC Company can sell common shares at $30 per share and can obtain debt funding at 8 percent. It has a marginal income tax rate of 25 percent. The yield on US Treasury securities is 3 percent. The market risk premium is 6.0 percent, and the firm 5 beta is 0.9 . It has a targeted debt-to equity ratio of 1:1. What is its cost of equity? Enter your answer in whole numbers rounded to two decimal places if necessary