Venture Incs balance sheet shows a total of noncallable $40 million long-term debt with a coupon rate of 7% and a yield to maturity of 8%. This debt currently has a market value of $60 million. The balance sheet also shows that the company has 5 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $60 million. The current stock price is $20 per share; stockholders' required return, r_s, is 14%; and the firm's tax rate is 20%. The CFO thinks the WACC should be based on market value weights, what is that WACC?

a.

10.96%

b.

11.15%

c.

11.60%

d.

11.75%