Question 11 (5 points) 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 9.96%. What is Percy's cost of common equity? OA) 10% B) 1596 C) 9% D) 13% E) 11% Paee 111 of 20