Hi there, I need help with this question. Thanks very much.

A company has an outstanding debt with a face value of $6,500, which has annual coupon rate of 8%. The market value of this debt is the same as its face value. Company's expected EBIT is $1,400, its unlevered cost of capital is 14% and its tax rate is 35%.

What is the cost of equity for the company?

MC OPTIONS:

A. 23.60%

B. 18.57%

C. 25.14%

D. 17.90%

E. 22.41%