"High State Brewery is considering a project that will be financed with a debt-to-equity ratio of 0.2. Find the appropriate cost of capital to be used under the FTE method to value High State if the cost of debt is 8%, the unlevered cost of capital is 14%, and the tax rate is 40%."

14.7%

14.0%

12.5%

0.8%

12.1%