The following financial statement data pertains to Southwater, 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	7.23%
Common Equity:
Book Value	$21,365
Market Value	$66,735
Income Tax Rate	30.5%
Market Equity Beta	1.3
Market Premium	7.45%
Risk-free interest rate	2.5%

Calculate Northridges weighted-average cost of capital .

	a.	9.77%
	b.	10.51%
	c.	7.04%
	d.	12.24%