Suppose the weighted average cost of capital of the Carla Vista Company is 12 percent. If Carla Vista has a capital structure that is 50 percent debt and 50 percent equity, its before-tax cost of debt is 4 percent, and its marginal tax rate is 20 percent, then its cost of equity capital is closest to: 18.80 percent. 20.80 percent. 16.80 percent. 14.80 percent