Assume the Following Information About a Firm's Capital Components The Firm's WACC Is:
A) 11

Assume the following information about a firm's capital components: $\begin{array}{lll}\text { Debt } & \text { Capital Structure } & \text { Cost } \\\text { Preferred stock } & \$ 20,000 & 8 \% \\\text { Common stock } & \$ 20,000 & 11 \% \\& \$ 60,000 & 14 \%\end{array}$ The firm's WACC is:

A) 11.00%.
B) 11.90%.
C) 12.20%.
D) 12.05%.