Tardy Clocks Inc (TC) has long term bonds with a face value of $6M, the coupon rate on the bonds is 6% and the yield on the bonds is also 6%. The unlevered cost of equity is 10% and the value of TC's equity is $9.1M. The corporate tax rate is 35%

What is the required return of shareholders at Tardy?
A) 6.00%
B) 10.00%
C) 10.92%
D) 11.71%
E) 12.57%

D