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 8.96%. What is Percy's cost of common equity? A) 9% B) 11.33% C) 14% D) 12.98% E) 10.21%