Omega Co. does not currently have any debt. Its tax rate is 35% and its unlevered beta is estimated to be 1.5. The treasury bond rate is 6% and the historical risk premium over the risk-free rate is 5.5%. Omega expects to borrow up to 75% of its equity value to fund future growth. Estimate the firm's cost of equity after it increases its leverage. Question 30 options:

22.85%

21.21%

18.54%

17.77%