Oliva Corporation (OC) is planning to establish a new plant to produce olive oil in Kalamata under a new company named Kalamata Oliva Corporation (KOC). OCs unlevered beta is 1.5 and the tax rate is 25%. KOCs debt-to-equity ratio is 0.5. Considering that the risk-free rate is 3% and the market return is 10%, KOCs cost of equity is: Select one: a. 10.60%

b. None of the proposed answers is correct

c. 17.44%

d. 22.50%

e. 12.87%