B and C are giving me trouble

this is an example question I am trying to use by plug in variables but i am getting B/C wrong somehow?

Acetate, Inc., has equity with a market value of $35 million and debt with a market value of $15 million. Treasury bills that mature in one year yield 2% per year, and the expected return on the market portfolio is 10%. The beta of Acetate

Please nd the answer as follows:

Part A:

Debt/Equity = 15/35 = .428 or .43

Part B:

Cost of Equity = 2 + 1.15*(10 -2) = 11.2%

WACC = 15/50*.02 + 35/50*.112 = 8.44%

Part C:

.112 = Rul +.43(Rul -.02)

.112 = Rul + .43Rul - .0086

Rul = 8.44%

Part D:

The conclusion is that in the absence of taxes, the cost of capital for an all equity rm will be the same as the WACC of similar/identical levered rm.

ACTUAL QUESTION PLEASE HELP

Hatter, Inc., has equity with a market value of $22 million and debt with a market value of $11 million. The cost of debt is 8 percent per year. Treasury bills that mature in one year yield 4 percent per year, and the expected return on the market portfolio over the next year is 10 percent. The beta of the company's equity is 1.05. The firm 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.)

Debt-equity ratio .43

b.What is the company's weighted average cost of capital?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Weighted average cost of capital%

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

Cost of capital%