The market value of Charter Cruise Company's equity is $15 million and the market value of its debt is $5 million. The firm's debt is a four-year annual bond with 8 percent coupon rate, face value of $1,000 and a current price of $878.31. The required rate of return on the equity is 20 percent. calculate the company's cost of capital. (Assume no taxes.) a. 20 percent b. 18 percent c. 14 percent d. 11 percent