P14-2 Calculating Cost of Equity [LO1] The Up and Coming Corporation's common stock has a beta of 1.4. If the risk-free rate is 3.5 percent and the expected return on the market is 14 percent, what is the company's cost of equity capital? (Do not round your intermediate calculations.)

23.1%

18.93%

18.2%

19.11%

17.29%