b) Irish Produce is an Irish producer of food products. Over the past year, profitability has been strong, and the share price has risen from 55 per share to 80 per share. Financial analysts (who generate projections in euros) expect the profit growth to continue. The company has 200 million shares outstanding. Its borrowing is conservative; the company has only 8,000 million in debt. The debt trades at a yield to maturity 50 basis points above Irish risk-free bonds. Irish Produce has a market beta of 0.7. If the Irish risk-free rate is 7%, the market risk premium is 5%, and the marginal tax rate is 30%, what is the cost of capital of Irish Produce? (Assume that the current capital structure is the target capital structure going forward.) (10 marks)