Question 8 (4 points) The following information applies to a firm: The firm has a target capital structure of 40% debt and 60% common equity. The firm has 15-year, 12% annual coupon bonds that have a face value of $1,000 and sell for $1,150. The risk-free rate is 5%. The market risk premium (RPM) is also 5%. The firm common stock has a beta of 1.4. The firm tax rate is 40%. What is the company's after-tax cost of common equity? a) 7.2 b) 12% c) 9.6 d) 10