Question $1$:

A$.$ Butcher Timber Company hired your consulting firm to help them estimate the cost of equity. The yield on the firm's the cost of equity can be estimated using a risk premium of $3\mathrm{.}85\%$ over a firm's own cost of debt. What is an estimate

$13\mathrm{.}63\%$

$13\mathrm{.}10\%$

$14\mathrm{.}74\%$

$12\mathrm{.}60\%$

$14\mathrm{.}17\%$