Question $25$

$1$ pts

Jacque Ewing Drilling, Inc., has a beta of $0\mathrm{.}85$ and is trying to calculate its cost of equity capital. If the risk$-$free rate of return is $7$ percent and the expected return on the market is $12$ percent, then what is the firm's after$-$tax cost of equity capital if the firm's marginal tax rate is $27$ percent?

none of these

$16\mathrm{.}51\%$

$12\mathrm{.}25\%$

$11\mathrm{.}25\%$

$8\mathrm{.}21\%$