Question 1 (10 points) Listen Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend of $3.00 last year to its shareholders and plans to increase the dividend annually at the rate of 3.0%. It currently has 2,000,000 common shares outstanding. The shares currently sell for $20 each. The common stock beta is 0.8. Easy Car Corp. also has 10,000 semiannual bonds outstanding with a coupon rate of 7%, a maturity of 21 years, and a par value of $1,000. The bonds currently have a yield to maturity (YTM) of 9%. The risk-free rate is 1% and the market risk premium is 8%. What is the best estimate of the cost of equity for Easy Car Corp. if the corporate tax rate is 20%? When answering this problem enter your answer using percentage notation but do not use the % symbol and use two decimals (rounding). For example, if your answer is 0.10469 then enter 10.47; if your answer is 10% then enter 10.00 Your Answer: Answer