1. The Harden Companys cost of common equity is 11 percent, its before-tax cost of debt is 8 percent, and its marginal tax rate is 45 percent. The stock sells at book value. Using the following balance sheet, calculate Hardens WACC.

Assets Liabilities and EquityCash$ 100 Accounts receivable400 Inventories340 Long-term debt$1,359Net plant and equipment 2,020 Common equity 1,501Total assets$2,860 Total liabilities and equity$2,860 a.7.70% b.9.57% c.5.27% d.7.86% e.7.48%