A company is 34% financed by risk-free debt. The interest rate is 10%, the expected market risk premium is 8%, and the beta of the company's common stock is .65.

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 30% rate?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

After-tax WACC_________ %