3. Willow Bay Company has 10 million shares of common stock outstanding with a price of $14 per share. There are 1 million shares of preferred stock outstanding with a price of S50 per share. The company also has debt outstanding with a market value of S60 million. The required return on common stock is 13.8%. The required return on preferred stock is 12% and the before-tax required return on debt is 8%. If the tax rate is 40%, what is Willow Bay's WACC? a. 11.28 b. 11.68 c. 12.63 d. 12.91 e. none of the above are correct