Use the following data for the next 5 questions: Debt 50,000 bonds with a 5.0% coupon rate, payable annually, 15 years to maturity, selling at $1,050 per bond. Common Stock Preferred Stock 1,000,000 shares of common stock outstanding. The stock sells for a price of $65 per share and has a beta of 1.1 150,000 preferred shares outstanding, currently trading at $90 per share; with an annual dividend payment of $6.50 The market risk premium is 7% and the risk free rate is 2.5% 35% Market Tax Rate 17) The company's cost of common stock is: a) 8.50% b) 9.42% c) 12.18% d) 10.20% e) 11.50%