Question $3(1$ point$)$

Percy Motors has a target capital structure of $49\mathrm{.}60\%$ debt and $50\mathrm{.}40\%$ common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is $9\mathrm{.}80\%,$ and its tax rate is $52\mathrm{.}00\%.$ Percy's CFO estimates that the company's WACC is $11\mathrm{.}8084\%.$ What is Percy's cost of common equity?

$18\mathrm{.}8000\%$

$9\mathrm{.}4752\%$

$15\mathrm{.}0400\%$

$13\mathrm{.}7849\%$

$22\mathrm{.}5600\%$