Coxner Industries Berhad has an expected Earnings Before Interest and Taxes (EBIT) of

$420,000 in perpetuity and a tax rate of 35 percent. The firm has $70,000 in outstanding debt

at an interest rate of 8 percent and its unlevered cost of equity is 15 percent.

Compute the

Weighted Average Cost of Capital

(WACC) of the levered firm with and

without tax.