Company wants to change their capital structure such that they have a cost of equity of 12%. Currently, the firm has a pre-tax cost of debt of 6.25%, a tax rate of 20%, and a cost of equity of 11%. Their current capital structure consists of two thirds equity and one third debt. What debt-equity ratio is needed for the firm to achieve its targeted cost of equity?

A. 0.67

B. 0.40

C. 0.50

D. 0.87

E. None of the above