Alabaster Incorporated wants to be levered at a debt-to-value ratio of .6. The cost of debt is 9 percent, the tax rate is 21 percent, and the cost of equity for an all-equity firm is 12 percent. What will be the firm's cost of equity?

A) 12.31 percent

B) 16.45 percent

C) 12.08 percent

D) 15.56 percent

E) 13.58 percent