1.) A firm has an asset base with a market value of $5.3 million. Its debt is worth $2.5 million. If $0.8 million is paid in interest annually and the shareholders expect a 16% annual return, what is the weighted average cost of capital assuming no corporate taxes? Round your answer to two decimal places.

2.) What is the WACC if corporate taxes are 45%? Round your answer to two decimal places.