Consider a Company with debt and equity of 20,000 and 50,000respecteively . A Company enjoy a 12% interest rate for its liability . The market have a beta of 2.45. The risk free rate is at 5%, while the equity premium is 4%. The tax rate is at 30%. Compute for the cost of equity.

a.) 18.40%

b.)14.80%

c.)15.05%

d.)14.50%