QUESTION 25 Bavarian Brewhouse Capital Structure Information for Bavarian Brewhouse Debt ( in million) $25 Preferred Stock (in million) $ 5 Common Stock (in million) $45 Total Capital $75 Cost of debt 8% $ 2.50 Annual Preferred Stock Dividend Preferred Stock Market Price $16.13 Common Stock Beta 0.85 Risk free rate 3.75% 17.55% Expected return on market portfolio What is Bavarian Brewhouse's cost of common equity (required return on its equity)? CA. 10.67% C B. 12.55% O C. 16.23% O D. 15.48%