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Archimedes Levers ( Ticker: AL ) is financed 6 0 % with debt and 4 0 % with equity. AL s cost of debt is

Archimedes Levers (Ticker: AL) is financed 60% with debt and 40% with equity. ALs cost of debt is 8% and ALs cost of equity is 20%. If the tax rate is 20%, what would ALs cost of equity be if they were to pay off all their debt and become all-equity financed, but not change the left side of the balance sheet? .
A.12.8%
B.9.0%
C.20.0%
D.14.0%
E.11.8%

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