Company has no debt. It has $40 million in common stock outstanding and $10 million in preferred stock. Its corporate tax rate is 30%. Its common stockholders expect a return of 17%. Its preferred stockholders expect a return of 12%. What is Company's weighted average cost of capital?
A. 16%
B. 11.92%
C. 15.28%
D. 17%
E. None of the above
