James Bay Water Park Company Operates in a World with Zero

James Bay Water Park Company operates in a world with zero taxes and no financial distress.The firm has a debt/equity ratio of 1.The cost of equity is 15 percent and the cost of debt is 8 percent.The only difference between Lanudiere Company and James Bay Water Park is that Lanudiere Resort has a debt/equity ratio of 2.According to M&M,the cost of equity for Lanudiere Resort will be:

A) greater than the cost of equity for James Bay Water Park.
B) the same as the cost of equity for James Bay Water Park.
C) less than the cost of equity for James Bay Water Park.
D) insufficient information is provided to answer the question.