Salmon Inc.has debt with both a face and a market value of $227,000.This debt has a coupon rate of 7 percent and pays interest annually.The expected earnings before interest and taxes is $87,200,the tax rate is 21 percent,and the unlevered cost of capital is 12 percent.What is the firm's cost of equity?
A)13.25 percent
B)13.89 percent
C)13.92 percent
D)14.27 percent
E)14.14 percent

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The Answer of Salmon Inc.has debt with both a face and a market value of $227,000.This debt has a coupon rate of 7 percent and pays interest annually.The expected earnings before interest and taxes is $87,200,the tax rate is 21 percent,and the unlevered cost of capital is 12 percent.What is the firm's cost of equity?
A)13.25 percent
B)13.89 percent
C)13.92 percent
D)14.27 percent
E)14.14 percent