The market value of Charon Ferries' common stock is $16 million and the market value of its risk-free debt is $4 million. The beta of the company's common stock is 1.5 and the expected risk premium on the market portfolio is 8 percent. There are no taxes. If the Treasury bill rate is 5 percent, what is the company's cost of capital? (What if taxes were 30%?) 17% Rm = ? 13% 13-5= 8 a. 14.6 percent b. 17.0 percent c. 20.0 percent d. 8.6 percent