A company is 47% financed by risk-free debt. The interest rate is 12%, the expected market risk premium is 10%, and the beta of the companys common stock is 0.57.

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

After-tax WACC

%