Question: The following data pertains to Grumpy Corp. Grumpy Corp. Total Assets $23,610 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity:

The following data pertains to Grumpy Corp. Grumpy Corp. Total Assets $23,610 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity: Book Value $6,150 Market Value $25,830 Marginal Income Tax Rate 37% Market Beta 1.73 Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Grumpy's cost of equity capital, using the capital asset pricing model: Group of answer choices 8.9% 15.2% 13.4% 10.4%

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