ICBM develops and manufactures computer hardware and offers related technology services. The data in the following table (amounts in millions of dollars) applies to ICBM:

Total assets	$122,278
Interest bearing debt	$50,792
Average pretax borrowing cost	5.6%
Common equity:
Book value	$22,907
Market value	$97,985
Income tax rate	39.0%
Market equity beta	.8

a. Assume that the intermediate-term yields on U.S. government Treasury securities are 2.7%. Assume that the market risk premium is 5.6%. Compute the cost of equity capital for ICBM. Enter your result as a percentage rounded to two decimal places.

b. Compute the weighted-average cost of capital for ICBM. Enter your result as a percentage rounded to two decimal places.

c. Compute the unlevered market (asset) beta for ICBM. Enter your result rounded to two decimal places.

d. Assume that ICBM is a candidate for a potential leveraged buyout. The buyers intend to implement a capital structure that has 74.0% debt (with a pretax borrowing cost of 7.9%) and 26.0% common equity. Project the weighted average cost of capital for ICBM based on the new capital structure. Enter your result as a percentage rounded to two decimal places.