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Johnson Fuel Systems has a weighted average cost of capital of 7.35%. Estimate Johnson's cost of equity given the following information: The firm's effective tax

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Johnson Fuel Systems has a weighted average cost of capital of 7.35%. Estimate Johnson's cost of equity given the following information: The firm's effective tax rate is 25%, they have an equal mix of debt and equity, the required return on the market portfolio is 996, Johnson has a before-tax cost of debt of 6%, and the risk-free rate of return is 3%. A) 10.20% B) 2.25% C) 9.00% D) 5.10%

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