The common stock of Safe-T-First, Inc., has 20 percent less systematic risk than the market. Currently, the market risk premium is 8 percent while the U.S. Treasury bill is yielding 2 percent. What is Safe-T-Firsts cost of equity?

a. 6.40 percent

b. 6.90 percent

c. 7.60 percent

d. 8.40 percent

e. 9.80 percent