The Esso's cost of common equity is 16%, its before-tax cost of debt is 13%, and its marginal tax rate is 40%. The stock sells at book value. Using the following balance sheet, calculate Esso's WACC. Assets Liabilities and Equity Cash $ 120 Accounts receivable. 240 Inventories 360 Long-term debt $1,152 Plant and equipment, net 2,160 Common equity 1,728 Total assets $2,880 Total liabilities and equity $2,880 a. 107% b. 11.2% c. 12.7% d. 13%