17.)

The market value of Company's common stock is $40 million, and the market value of its risk-free debt is $60 million. The beta of the company's common stock is 1.45, and the market risk premium is 12 percent. If the Treasury bill rate is 4 percent, what is the company's cost of capital (WACC) assuming no taxes (tax rate=0%)?

		17.05 percent
		10.96 percent
		14.44 percent
		15.05 percent
		8.35 percent