A small private firm does not currently have any debt. The firm estimates the return to shareholders is 14.50 percent. The shareholders of the firm are not satisfied with the current return and are considering changing the firm's capital structure to increase shareholder returns. The shareholders are proposing a new capital structure with 35 percent debt. If the interest rate on the new debt is 8 percent and the firm's tax rate is 20 percent, what would be the firm's new levered return to shareholders?

Group of answer choices

13.94%

17.30%

17.70%

15.90%

14.27%