X is a publicly traded company. It currently has 10m shares trading at $12 per share and $150m in book value of equity. Its book value of debt is $75m with a market value of $80m. Xs cost of equity is 9%, the pre-tax cost of debt is 4%, and the marginal tax rate is 40%. What is Xs cost of capital? a) 7.4% b) 7.0% c) 7.7% d) 6.36% e) None of the above.