A firm has an unlevered equity beta of 1.20. The capital structure of the firm consists of debt and equity. The market value of the debt is $1,000,0000 and the market value of equity is $2,000,000. The annual risk free rate of return is 5 percent and the annual market risk premium is 6 percent. The companys tax rate is 25 percent. Assume that the beta of debt is zero. What is the firms required rate of return on equity? A) 6.65 percent B) 8.45 percent C) 13.70 percent D) 14.90 percent