To calculate the WACC, Lewis Inc.'s CFO has collected the following information: The company's capital structure consists of 40% debt and 60% common stock. The company has 25-year, 12% annual coupon bonds that have a face value of $1,000 and sell for . The company uses thCAPM to calculate the cost of common stock. Currently, the risk-free rate is 6% and the market risk premium is 5%. The company's common stock has a beta of 1.6. The company's tax rate is 40%. What is the company's cost of common equity? 14.00% 14.60% 17.60% 9.65%