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XYZ Oil and Gas company has issued 20,000 Bonds priced at exist850 term 15 years with annual payments and a coupon rate of 5%. This

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XYZ Oil and Gas company has issued 20,000 Bonds priced at exist850 term 15 years with annual payments and a coupon rate of 5%. This is their only debt. The firm has 1,000,000 shares of stock outstanding with a current price of exist20 per share. The firm's beta is 1.75, the return on the market is 10% and the risk-free rate is 2.2 percent. The Corporate Tax Rate is 35%. Given this information Calculate the following: Calculate the required return for XYZ Oil and Gas company's equity? 16.5% 7.8% 15.99% 13.9%

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