You are analyzing a company,VanVleck, Inc., and came across the following information:

• VanVleckhas $50million in total debt, while each bond is paying 10% annual coupon payments, with a $1000 face value and 25 years to maturity, selling for 105% of par.
• Their equity is valued at $100million
• Their corporate tax rate is 20%
• The company has no preferred stock

If the WACC for the company is 12%, what should be VanVleck'scost of equity?

11.49%

12.49%

15.00%

14.21%

13.99%