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 1.8 and the expected risk premium on the market portfolio is 10 percent. There are no taxes. If the Treasury bill rate is 5 percent, what is the company's cost of capital?

Between 13 and 15%

Between 19 and 21%

Between 16 and 18%

Less than 10%