The answer is 6.60% I need an explanation

Exhibit 2: Market information Market risk premium: 5.0% SMB premium: 4.01% HML premium: 0.93% Yield on 1-year T-bill: 0.22% Yield on 10-year Treasury: 1.63% Flat tax rate for all firms: 30% Debt beta for all firms: 0.2 12. Use the following information about comps for your privately-held firm to arrive at an estimate of your own firm's cost of equity. Assume that CAPM holds. Your firm will be all-equity financed for the foreseeable future. Select the closest answer. Look at the Market Info above to help Beta 1.44 Comp 1 Comp 2 Comp 3 Comp 4 1.51 1.21 Market Cap Total Debt $9,500.00 $5,500.00 $9,000.00 $4,000.00 $60,000.00 $8,000.00 $52,000.00 $7,789.91 0.88 a. 7.93% b. 6.60% c. 7.90% d. 1.26 e. 0.99 Classification Large cap Mid cap Small cap Micro cap Market Cap >$8B $2.01B - $8B $501M - $2B $8B $2.01B - $8B $501M - $2B