Rudolph's Transportation Has an Overall Cost of Equity of 14

Rudolph's Transportation has an overall cost of equity of 14.8 percent and a beta of 1.4. The firm is financed solely with common stock. The risk-free rate of return is 3.5 percent. What is an
Appropriate cost of capital for a division within the firm that has an estimated beta of 1.3?

A) 13.26 percent
B) 13.42 percent
C) 13.48 percent
D) 13.74 percent
E) 13.99 percent