Blue Bull, Inc., has a target debt-equity ratio of .89. Its WACC is 8.8 percent, and the tax rate is 40 percent.

Required: (a) If the companys cost of equity is 12.9 percent, what is its pretax cost of debt?(Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Pretax cost of debt % ___________

(b) If the aftertax cost of debt is 5.5 percent, what is the cost of equity? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Cost of equity % ___________