Following five problems

Current Wd $30\%$ Tax rate $30\%$

Structure Ws $70\%$

WACC $12\%$

Other Rf $5\%$ Tax rate $30\%$

Factors Market Risk Premium $8\%$

As a CEO, you considering a change to your company's capital structure. The CFO believes the firm should increase the debt ratio $($D$/$E$)$ to $1\mathrm{.}5.$ What is the cost of equity of the target capital structure?

Group of answer choices

$25\mathrm{.}18\%$

$13\mathrm{.}83\%$

$15\mathrm{.}25\%$

$17\mathrm{.}62\%$