Modigliani Co. has firm assets that are considered 50% more risky than the overall market. The firm's target capital structure is 60% equity and 40% debt. If the expected market return is 9% and the risk-free rate is 3%, what is the expected return on Modigliani's equity? (Assume that the tax rate is 0%).

A. 18%

B. 16.5%

C. 20%

D. 12%