(estimating the WACC) Komishito has 10,000 bonds and 400,000 shares outstanding. The bonds have a 10% annual coupon, 1000 face value, 1050 market value, and 10 year maturity. The beta on the stock is 1.30 and its price per share is $40. The riskless return is 6%, the expected market return is 14%, and the firms tax rate is 40%.

What is the after-tax cost of equity financing?

4.2286% 4.6119% 5.5300% 6.0000% 9.2338% 12.0900% 14.0000% 15.4400% 16.4000%