Question) Engadine Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11.5 percent and the risk-free rate is 4 percent. What is the firm's cost of equity?

a. 14.05 percent

b. 10.05 percent

c. 12.98 percent

d. 15.67 percent

e. 15.50 percent