You have collected the following information about your firm. its 180 million shares of common stock have a book value of $12 per share and a current market price of $21 per share. The stock has a return standard deviation of 0.34 and beta of 0.82. The expected refurn for the market portfolio is 9% and the T-bill rate is 3%. The firm's. outstanding bonds have a total face value of $1070 million, maturity of 12 years, semi-annual 5.7% coupon, and a current price of 106.5% of par value. The marginal tax rate is 35%. What is the cost of capital used to evaluate projects for the firm? $0.07$0.06$0.05$0.07