Use the Following Information to Answer the Question(s)below

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries is expected to generate free cash flows of $24 million per year.Galt has permanent debt of $80 million,a corporate tax rate of 21%,and an unlevered cost of capital of 12% and its cost of debt capital is 6%.
-If Galt's debt cost of capital is 6%,then Galt's equity cost of capital is closest to:

A) 11.2%.
B) 12.0%.
C) 14.8%.
D) 15.5%.