Acetate, Inc., has equity with a market value of $23.9 million and debt with a market value of $7.17 million. Treasury bills that mature in one year yield 5 percent per year, and the expected return on the market portfolio is 12 percent. The beta of the companys equity is 1.24. The company pays no taxes.

a. What is the company's debtequity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. What is the companys weighted average cost of capital? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

c. What is the cost of capital for an otherwise identical all-equity company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)