Your firm has a Return on Assets of 8.00%, the firm can issue debt at 3.50% regardless of the leverage, and the firms marginal tax rate is 25%. If the firms debt-to-asset ratio is 42%, what is the Cost of Equity Capital within the 1963 Miller & Modigliani framework?

Group of answer choices

12.07%

10.44%

6.77%

10.36%

9.42%