Given the following info compute the cost of equity for a company: US treasury 20 year yield to maturity 4%. Specific company risk premium 1% book value of equity, $225000000 common shares outstanding 50000000price per share $7, equity risk premium 5%, beta 1.2, size premium in excess of CAPM (market capital < $453254000) 4%.

A.15%

B.15.5%

C.16%

D.NONE