For your firm the return on assets is 8.75%. The firm can borrow at 4% and the required return on debt is not affected by the firms leverage. The firms marginal tax rate is 21%, and its current debt-to-asset ratio is 25%. Within the 1963 M&M framework, what is the firms required return on equity?

Group of answer choices

9.69%

10.00%

11.47%

8.75%