Supposed the WACC of the Larimer Corporation is 12%. If Lorimer has a capital structure of 40% debt and 60% equity, a before-tax cost of debt of 8%, and a marginal tax rate of 30%, then its cost of equity capital is closest to:

Select one:

a.

12%

b.

14.8%

c.

16%

d.

16.8%

e.

17.2%