The Market Value of Charcoal Corporation's Common Stock Is $20

The market value of Charcoal Corporation's common stock is $20 million,and the market value of its risk-free debt is $5 million.The beta of the company's common stock is 1.25,and the market risk premium is 8%.If the Treasury bill rate is 5%,what is the company's cost of capital? (Assume no taxes.)

A) 15%
B) 14.6%
C) 13%
D) 7%