XYZ Corporation . is issuing a $1,000 par value bond that pays 9% interest annually. Investors are expected to pay $975 for the 10-year bond. Bender and Co. can expect to pay an additional risk premium of 4.2% on common stock. What is the firm's cost of equity capital? 13.60 4.20 13.44 9.40 none of the available choices

XYZ Corporation . is issuing a $1,000 par value bond that pays 9% interest annually. Investors are expected to pay $975 for the 10-year bond. Bender and Co. can expect to pay an additional risk premium of 4.2% on common stock. What is the firm's cost of equity capital? 13.60 4.20 13.44 9.40 none of the available choices