The market value of Charcoal Corporation's common stock is $20 million, and the market value of its risk-free debt is $10 million. The beta of the company's common stock is 1.5, and the market risk premium is 8 percent. If the Treasury bill rate is 5 percent, what is the company's cost of capital? (Assume a flat corporate taxe rate of 21%.) O 15.0 percent 13.4 percent O 12.7 percent 10.7 percent

The market value of Charcoal Corporation's common stock is $20 million, and the market value of its risk-free debt is $10 million. The beta of the company's common stock is 1.5 , and the market risk premium is 8 percent. If the Treasury bill rate is 5 percent, what is the company's cost of capital? (Assume a flat corporate taxe rate of 21%. 15.0 percent 13.4 percent 12.7 percent 10.7 percent