Firm XYZ Inc.'s tax rate is 30%, its debt to total assets ratio is 40%, its beta is 1.25, 1-year T-Bill rate is 2%, and the long Treasury rate is 3%. XYZ Inc.'s executives believed that market risk premium should be 5 percent. What is the cost of equity? O 5.75% 10.25% 5.55% It cannot be determined

Firm XYZ Inc's tax rate is 30%, its debt to total assets ratio is 40%, its beta is 1.25,1-year T-Bill rate is 2%, and the long Treasury rate is 3%. XYZ Inc's executives believed that market risk premium should be 5 percent. What is the cost of equity? 5.75% 10.25% 5.55% It cannot be determined