You will use the following information to answer 4 different questions (I will repeat it again, but it is the same information). The company faces a tax rate of 40%. The company has 100,000 shares common stock. The common stock has a price of $28. You estimate that the beta of the common stock is 1.5. The expected market return is 10%, and the risk-free rate is 5%. You decide to employ the CAPM approach to calculate the cost of equity. The company has one debt issues outstanding. The issue consists of 1,000 semi-annual coupon bonds. Each bond has a face value of $1000. The annual coupon rate is 10%, and each bond has a market price of $885.30. The bonds will mature 10 years from now and the next coupon will be paid in 6 months. Using the information provided above, calculate the cost of debt of the company. 6.0% 8.5% 12.0% 13.4%