1. The following financial statement data pertains to Northwater, Inc., a manufacturer of women's suits (dollar amounts in millions):

Total Assets	$154,287
Interest-Bearing Debt	$33,984
Average Pre-tax borrowing cost	7.75%
Common Equity:
Book Value	$21,365
Market Value	$66,735
Income Tax Rate	39.6%
Market Equity Beta	0.77
Market Premium	7.45%
Risk-free interest rate	2.5%

Required:

a.	Calculate the company's cost of equity capital.
b.	Calculate the weight on debt capital that should be used to determine Northwaterss weighted-average cost of capital.
c.	Calculate the weight on equity capital that should be used to determine Northwaters weighted-average cost of capital.
d.	Calculate Northwaters weighted-average cost of capital.