Given the information provided in the table, what is your estimate of the cost of equity for Gibson Flowers? Risk-free rate of interest 3.5% Average equity market return 10.5% Estimated cost of debt 8.0% Estimated correlation of Gibson with the market 0.726 Estimated standard deviation of Gibson's returns 35% Estimated standard deviation of the market's returns 20% Estimated effective U.S. tax rate 35%

		13.34%
		12.39%
		7.81%
		16.83%