The Woodworker has a pretax cost of debt of 6.25 percent and a return on assets of 15.5 percent. The debt-equity ratio is .41. Ignore taxes. What is the cost of equity? Please type out a step-by-by solution

A) 18.46 percent

B) 18.78 percent

C) 19.43 percent

D) 18.94 percent

E) 19.29 percent