If a security is with beta of of 1.5, the risk-free rate is 10%, and the expected return on the market portfolio is 16%, what should be the required rate of return using the Capital Asset Pricing Model (CAPM)?

A. 10.09%

B. 16%

C. 19%

D. None of the above

Tahoma Company's current capital structure of 30% debt and 70% equity is considered to be optimal. If the company raises additional capital in proportion to its current capital structure, what amount of total investment can be financed by P21 million addition in retained earnings?

A. P70 million

B. P52.5 million

C. P30 million

D. P40 million