A company is 31% financed by risk-free debt. The interest rate is 9%, the expected market risk premium is 7%, and the beta of the companys common stock is .68.

a. What is the company cost of capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Cost of capital = ?%

b. What is the after-tax WACC, assuming that the company pays tax at a 40% rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) After-tax WACC =? %