Johnson Tire Distributors has an unlevered cost of capital of 10 percent, a tax rate of 34 percent, and expected earnings before interest and taxes of $1,700. The company has $3,200 in bonds outstanding that have an 8 percent coupon and pay interest annually. The bonds are selling at par value. What is the cost of equity? 8.37 percent 7.32 percent 9.42 percent 10.46 percent 6.28 percent