14. Greshak Corp. is attempting to estimate its optimal capital structure. Currently, the company has a capital structure that consists of 20% debt and 80% equity, based on market values. The risk-free rate is 6.0%, the firm's ROA is 9.5%, and the equity market risk premium is 5.0%. Currently the company's cost of equity, which is based on the CAPM, is 12% and its tax rate is 40%. What would be Greshak's estimated cost of equity if it were to change its capital structure to 50% debt and 50% equity?

Select one: A. 13.00% B. 13.64% C. 14.35% D. 14.72% E. 15.60%