You have the following information regarding the company ScottStop: ScottStop has $$20mm$ in

debt, a $$6$ stock price and a tax rate of $40\%.$ ScottStop has a Weighted Average Cost of Capital of

$10\mathrm{.}5\%$ and its debt has a YTM of $5\%.$ The company has $10mm$ shares outstanding and has a Beta of

The current risk free rate is $3\%.$ Given the above information can you calculate the equity market

risk premium, and if so what is it$?$

a$.$ No$.$

b$.$ Yes $-$ it is $4\mathrm{.}5\%.$

c$.$ Yes $-$ it is $5\mathrm{.}0\%.$

d$.$ Yes $-$ it is $8\mathrm{.}0\%.$