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 2.The cost of equity is 20 percent.The only difference between Lanudiere Resort Company and James Bay Water Park is that Lanudiere Resort has a debt/equity ratio of 0 and has a cost of equity of 15 percent.What is the cost of debt for James Bay Water Park?

A) 5.0%
B) 10.0%
C) 12.5%
D) 17.5%