If the cost of equity for Modern Interiors is 18.32%, their after-tax bond financing is 5.46%, and their cost of capital for Preferred Stock is 17.44%, what is the weighted average cost of capital for Modern Interiors. Assume that Modern Interiors has a capital structure of 60% common stock, 30% debt, and 10% preferred stock.

a. 14.37%

b. 10.99%

c. 12.63%

d. 13.75%