Assuming an Imputation Tax System,calculate the Cost of Equity Capital

Assuming an imputation tax system,calculate the cost of equity capital for XHZ Ltd assuming the market and XHZ both pay fully franked dividends,which are fully utilised by shareholders,the beta of XHZ is estimated to be 1.3.The yield on a 10- year bond is 5.4 per cent and the market risk premium,including the value of franking credits,is estimated to be 6.3 per cent.

A) 15.57 per cent
B) 13.59 per cent
C) 10.35 per cent
D) 9.45 per cent