Holland Auto Parts is considering a merger with Workman Car Parts. Workman's market-determined beta is 0.9, and the firm currently is financed with 20% debt, at an interest rate of 8%, and its tax rate is 25%. If Holland acquires Workman, it will increase the debt to 60%, at an interest rate of 9%, and the tax rate will increase to 35%. The risk-free rate is 6% and the market risk premium is 4%. What is current required return to Workman's equity (before it is acquired)?

	a.	9.3%
	b.	7.4%
	c.	9.6%
	d.	9.7%
	e.	8.9%