9.8 Kayla, Inc., has a target debt-equity ratio of 0.60. Its WACC is 13 percent, and the tax rate is 35 percent. a. (5 points) If Kayla's cost of equity is 18 percent, what is its pretax cost of debt? b. (5 points) If the after-tax cost of debt is 9.5 percent, what is the cost of equity