Calculate Northridges weighted-average cost of capital. 2. The following data pertain to Loren Corporation (dollar amounts in thousands):

Total Assets $10,254

Interest-Bearing Debt $1,257

Average Pre-tax borrowing cost 9.20%

Common Equity:

Book Value $5,624

Market Value $21,479

Income Tax Rate 32%

Market Equity Beta 1.56

Riskless interest rate 3.8%

Market risk premium 6.5%

Using this information, calculate the following: a. Loren Corporations cost of equity capital b. The weight on debt capital that should be used to calculate Lorens weighted-average cost of capital.(hint use the mrkt value) C. Loren Corporations weighted-average cost of cap