Xerox Corporations tax rate is 21 percent. The firm's pre-tax cost of debt is 10 percent; the firm's debt-to-equity ratio is 1; the risk-free rate is 3 percent; the beta of the firm's common stock is 1.5; the market risk premium is 9 percent.

Using the CAPM paradigm, what is the firm's cost of equity capital?

A.	33.33 percent
	B.	10.85 percent
	C.	13.12 percent
	D.	16.5 percent

Find the cost of capital if this firm were financed entirely with equity.

A. 10.85 percent

B. 12.52 percent

C. 13.63 percent

D. 16.5 percent