A company has a target debt-equity ratio of 0.65. Its WACC is 10.4 percent, and the tax rate is 23 percent.

a. If the companys cost of equity is 14 percent, what is its pre-tax cost of debt?

b. If instead you know that the after-tax cost of debt is 5.8 percent, what is the cost of equity?

(Note: Please express the value as percentages and keep two digits after the decimal point e.g, 1.23%. Note: if your answer is 1.23%, please just enter 1.23 in the blank below.)

a. Pre-tax cost of debt= %

b. Cost of equity= %