Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's cost of equity capital, using the capital asset pricing model:

Xena Corp.
Total Assets	$23,610
Interest-Bearing Debt (market value)	$11,070
Average borrowing rate for debt	10.2%
Common Equity:
Book Value	$6,150
Market Value	$25,830
Marginal Income Tax Rate	37%
Market Beta	1.73

		A. 10.4%
		B. 13.4%
		C. 15.2%
		D. 8.9%