The Desert Outlet has an equity beta of 1.5, a debt beta of 0.1, and a cost of equity of 14.5 percent. The risk-free rate of return is 4.25 percent. The firm's debt equity ratio is 0.2. What is the firm's asset cost of capital?

Group of answer choices

13.30 percent

13.95 percent

12.90 percent

14.5 percent