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The following data pertains to Bearkat Enterprises (dollar amount in millions) Total Assets Market value of Debt Average pre-tax borrowing cost Book Value of Common

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The following data pertains to Bearkat Enterprises (dollar amount in millions) Total Assets Market value of Debt Average pre-tax borrowing cost Book Value of Common Equity Market Value of Common Equity Income Tax Rate Equity Beta $7,460 $3,652 10.596 $2,950 $13,685 3596 1.13 Market Information Return on Treasury bills Market Risk Premium 4.696 7.396 What is Bearkat Enterprises cost of common equity? a. 13.4896 O b.7.796 O c. 11.90% O d. 12.8596

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