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Kashmir Inc. has a debt-equity ratio of 0.50. The pre-tax cost of debt is 8.5% while the unlevered cost of capital is 14%. What is

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Kashmir Inc. has a debt-equity ratio of 0.50. The pre-tax cost of debt is 8.5% while the unlevered cost of capital is 14%. What is the cost of equity if the tax rate is 35%? Assume no cost of financial distress. Select one: O a. 16.75% b. 15.7875% c. 14.9625% O d. 14%

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