If Brown Inc, which is entirely financed with common stock, has an overall beta of $1\mathrm{.}2$ and a cost of equity of $13\mathrm{.}5$ percent, and if Division A$,$ the riskiest operation within the firm, has an estimated beta of $1\mathrm{.}5,$ what would be an appropriate cost of capital for Division A$,$ given a market risk premium of $9\mathrm{.}5$ percent? $13\mathrm{.}12\%13\mathrm{.}25\%16\mathrm{.}35\%17\mathrm{.}25\%$