RavensNest Limited has 20,000 shares of common stock outstanding at a market price of $50.00 a share. The firm also has a bond issue outstanding with a total face value of $500,000 which is selling for 97 percent of par value. The cost of equity is 9 percent while the pre-tax cost of debt is 4 percent. The firm has a beta of 0.95 and a tax rate of 40 percent. What is the company's cost of capital?

a)	7.67 percent
b)	9.03 percent
c)	6.84 percent
d)	9.61 percent
e)	8.32 percent