8. Motor Ltd has 1 million shares outstanding with market price of $60 per share. Beta of Motor stock is 0.8. Motor Ltd also has 80,000 bonds outstanding with 7% coupon rate, 10 years to maturity, and the face value of $1,000. Market price of the bond is $1082.5. The company pays corporate taxes of 34%. Further, market risk premium is 7% and the risk-free rate is 2.9%. The cost of capital of Motor Ltd is (a) 5.78% (b) 6.54% (c) 7.90% (d) 8.92%