Assume the following facts about a firm's financing in the next year:

Proportion of capital projects funded by debt	= 45%
Proportion of capital projects funded by equity	= 55%
Return received by bondholders	= 8.0%
Return received by stockholders	= 14.0%

The weighted cost of capital of this project is:

a. 10.7%.

b. 11.0%.

c. 11.3%.

d. $113,000.