Jinx, Inc. is a 100% equity-financed firm with a beta of 0.8. The companys CFO is analyzing the firms capital structure, and he recommends that the firm issue sufficient debt in order to attain a market debt-equity ratio of 0.75. Using a market risk premium of 9%, a risk-free rate of 2%, and a tax rate of 24%, what would be the required return on equity following this capital restructuring?

a. 6.6% b. 8.5% c. 13.3% d. 14.6% e. 10.8%