Question 3 (5 points) The ABC Company has the following information: ABC Company has a target capital structure of 40% debt and 60% common equity. ABC Company has a 15-year, 12% annual coupon bonds that have a face value of $1,000 and sell for $1,150. . The risk-free rate is 5%. The market risk premium (RPM) is also 5%. ABC Company's common stock has a beta of 1.4. ABC Company's tax rate is 40%. What is the company's WACC? a) 9.6% b) 12.2% c) 7.4% d) 10.8%