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Pixie inc. has a Weighted Average Cost of Capital of 6 % . The corporate tax rate is 3 5 % and the yield to

Pixie inc. has a Weighted Average Cost of Capital of 6%. The corporate tax rate is 35% and the yield to maturity on long term corporate bonds (cost of debt) is 3%. Pixie inc. also has a debt-equity ratio equal to 1. Pixie's cost of equity capital lies closest to
A)11.25%
B)9.5%
C)10.05%
D)8.75%
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