The weighted average cost of capital for Sunny Ltd $($assuming all three Modigliani and Miller assumptions apply$)$ is $16$ percent. What is the current cost of equity capital for the firm if its cost of debt is $7$ percent and the proportion of debt to total firm value for the firm is $0\mathrm{.}5?$

Select one:

a$.$

$25\%$

b$.$

$7\%$

c$.$

$16\%$

d$.$

$15\%$