India's sovereign bond rating was Baa3 in 2013, implying a default spread of 2.5%. The Indian government issue 10-year bonds at that time in rupees, with a yield of 7.85%. The US Equity Risk Premium was 5%. The standard deviation of Indian stock market was 27%, and the standard deviation of its government bond was 11%. What is the Equity Risk Premium for India adjusted for relative riskiness of stock market relative to the bond market? What is the cost of equity for a 100% Indian company with a beta of 1.5 to the Indian stock market. Select one: O a. Adjusted ERP = 8.14% New Cost of Equity = 18.06% O b. Adjusted ERP = 11.14% New Cost of Equity - 22.06% O c. Adjusted ERP = 16.14% New Cost of Equity = 32.06%