Johnson Tire Distributors has an unlevered cost of capital of 12 percent, a tax rate of 35 percent, and expected earnings before interest and taxes of $1,700. The company has $3,400 in bonds outstanding that have a 7 percent coupon and pay interest annually. The bonds are selling at par value. What is the cost of equity? 9.51 percent 10.86 percent 12.22 percent 8.15 percent 13.58 percent