Alabaster Incorporated Wants to Be Levered at a Debt-To-Value Ratio

Alabaster Incorporated wants to be levered at a debt-to-value ratio of .6.The cost of debt is 9 percent,the tax rate is 21 percent,and the cost of equity for an all-equity firm is 12 percent.What will be the firm's cost of equity?

A) 12.31 percent
B) 16.45 percent
C) 12.08 percent
D) 15.56 percent
E) 13.58 percent