'Johnson and Sons' is a renowned brand for tools and equipment. The company currently finances its operations with $40 million in shares and $10 million in bonds. The required return on shares is 16% and required return on bonds is 6%. Assume that, the company issues $15 million worth of additional bonds at 8%. Using the proceeds from sale of the bonds, Johnson plans to retire $15 million worth of equity. Assuming the WACC remains the same, what will be Johnson's new cost of equity? (Assume zero taxes and perfect capital markets.) Select one: O a. 20.80% O b. 14.00% O c. 15.55% O d. 22.00%