Percy Motors has a target capital structure of $40\%$ debt and $60\%$ common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is $9\%,$ and its tax rate is $40\%.$ Percy's CFO estimates that the company's WACC is $9\mathrm{.}96\%.$ What is Percy's cost of common equity?

A$)13\%$

B$)15\%$

C$)10\%$

D$)9\%$

E$)11\%$