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Question 2 0.5 pts . a Use the following information for the next 2 questions: A corporation has 10,000 bonds outstanding with a 6% annual

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Question 2 0.5 pts . a Use the following information for the next 2 questions: A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity and a $1,100 market price. The YTM of the bond is 4.48% . The company's 500,000 shares of common stock sell for $25 per share and have a beta of 1.5. The risk free rate is 4%, and the market return is 15%. Assuming a 21% tax rate What is the company's cost of equity (%)? (Hint: use CAPM with beta = 1.5) O 16.0 O 19.1 0 20.5 18.7 O 17.3

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