The following information applies to World Turn Co.: 10% rate of interest on newly issued bonds. 7% growth rate in earnings and dividends. The last dividend paid was $ 0.93. Shares sell for $16. Stock’s beta is 1.5. Market risk premium is 6%. Risk-free rate of interest is 5%. The firm is in a 40% marginal tax bracket. If the appropriate risk premium relative to the bond yield is 4%. World Turn’s equity cost of capital using the dividend discount model (DDM) and the capital asset pricing model (CAPM), is closest to:DDM CAPM ①A. 13.2% 6.5%②B. 12.8% 14.0%③C. 13.2% 14.0%（）

A．① 

B．② 

C．③