Johnson Tire Distributors has an unlevered cost of capital of 12 percent, a tax rate of 35 percent, and expected earnings before interest and taxes of $1,400. The company has $2,700 in bonds outstanding that have a 6 percent coupon and pay interest annually. The bonds are selling at par value. What is the cost of equity? A stock has returns of 3%, 18%, -24%, and 16% for the past four years. Based on this information, what is the 95% probability range for any one given year?