La Sante Pharmaceutical Co.'s common stock currently has a beta of 1.8. The 3-month U.S. Treasury Bill rate is 1.5% and the return of the S&P 500 index is 11.5%. The stock paid dividends of $2.00 per share yesterday, and the firm's corporate tax rate is 21%. Based on the capital asset pricing model, calculate the firm's cost of external equity. A. 18.5% B. 19.5% OC. 20.5% OD. 21.0% OE. 23.0%

La Sante Pharmaceutical Co.'s common stock currenty has a bela of 1.8. The 3-month U.S. Treasury Bal rate is 1.5\% and the retum of the SsP 500 index is 11.5\%. The stock paid dividends of \$2.00 per share yesterday, and the firm's corporate tax rate is 21%. Based on the capital asset pricing model, calculate the firm's cost of external equity. A. 18.5% B. 19.5% C. 20,5% D. 21.0% E. 23.0%