Shawhan Supply plans to maintain its optimal capital structureof 30% debt 20% pr

Shawhan Supply plans to maintain its optimal capital structureof 30% debt 20% preferred stock and 50% common stock far into thefuture. The required return on each component is: debt10%;preferred stock11%; and common stock18%. Assuming a 40% marginaltax rate what after-tax rate of return must Shawhan Supply earn onits investments if the value of the firm is to remainunchanged?A. 13.0%B. 10.0%C. 14.2%D. 18.0%