1.)The following data pertains to Stingar Corp. Assuming that the risk-free rate is 4.2% and the market risk premium is 6.2%, calculate Michalko's weighted-average cost of capital:

Stingar Corp. Total Assets $14,680 Interest-Bearing Debt $ 9,100 Average borrowing rate for debt 11% Common Equity: Book Value $ 5,120 Market Value $25,700 Marginal Income Tax Rate 40% Market Equity Beta 1.5

	A.	11.7%
	B.	15.9%
	C.	12.7%
	D.	10.93%