Given the following information for a public company: Beta: $8,$ Risk Free rate:

$5\mathrm{.}5\%,$ Equity risk premium: $3\mathrm{.}5\%.$ Calculate the company's cost of equity using

the Capital Asset Pricing Model $($CAPM$)$ and the expected market return,

respectively.

a$.10\mathrm{.}4\%,9\mathrm{.}0\%$

b$.12\mathrm{.}8\%,9\mathrm{.}0\%$

c$.11\mathrm{.}8\%,9\mathrm{.}0\%$

d$.10\mathrm{.}4\%,5\mathrm{.}0\%$