[单选题]
An analyst gathered the following data about a company:
Capital structure Required rate of return
30% debt 10% for debt
20% preferred stock 11% for preferred stock
50% common stock 18% for common stock
Assuming a 40% tax rate, what after-tax rate of return must the company earn on its investments?
A.13.0%.
B.14.2%.
C.18.0%.