5. Award: 12.50 points Problem 14-14 WACC (LO4) Welling Inc. has a target debt-equity ratio of 0.78. Its WACC is 9.4%, and the tax rate is 35%. a. If the company's cost of equity is 14%, what is its pre-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of debt % b. If instead you know that the after-tax cost of debt is 6.8%, what is the cost of equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of equity % References Worksheet Problem 14-14 WACC (L04) Learning Objective: 14-04 How to determine a firm's overall cost of capital