Charlotte Water System Inc. has financed its new $ 150 million water treatment plant with $85 million in equity and the remainder with bonds. The company has determined that its weighted average rate of return for this project is 15.6 percent. Charlotte Water System's pre-tax cost of debt after flotation costs is 7.05 percent, its marginal tax rate is 21 percent and the risk free rate is 1.6 percent. What is the firm's cost of equity capital? 22.12 percent 17.13 percent 23.30 percent 18.90 percent