The Herron Companys cost of common equity is 14 percent, its before-tax cost of debt is 9 percent, and its marginal tax rate is 40 percent. The stock sells at book value. Using the following balance sheet, calculate Herrons WACC.

Assets			Liabilities and Equity
Cash	$ 120
Accounts receivable	400
Inventories	480		Long-term debt	$ 909
Net plant and equipment	2,030		Common equity	2,121
Total assets	$3,030		Total liabilities and equity	$3,030

	a.	9.70%
	b.	11.42%
	c.	10.88%
	d.	7.50%
	e.	12.50%