You are the financial manager of a private firm, and are interested in determining the firm's cost of capital. A close competitor, whose stock is publicly traded, has a beta of 1.50 and a debt ratio of 30%. You are targeting a debt ratio of 50% for your firm. If the risk-free rate is 4% and the (expected) market risk premium is 6%, what is your cost of equity? 19.60% 16.60% 13.00% 8.20% 10.30%