Firm calculating cost of capital for major expansion program. - Tax rate =40%. - 10 -year, 12% coupon, semiannual payment noncallable bonds sell for $1,153.72. New bonds will be privately placed with no flotation cost. - 8%,$100 par value, quarterly dividend, perpetual preferred stock selts for $111.10. - Common stock sells for $60,D0=$4.19 and g=5%. - b=0.8:rRF=7%:RPM=6%, - Bond-Yield Risk Premium =2%. - Target capital structure: 30% debt, 20% preferred, 50% common equity. What is the company's cost of common stock, using Bond-yield risk premium approaches? 11.80%11.58%9.34%12.33%