Crawford Enterprises is a publicly held company located in Arnold, Kansas. The firm began as a small tool and die shop but grew over its 35 year- life to become a leading supplier of metal fabrication equipment used in the farm tractor industry. As the close of 2015, the firms balance sheet appeared as

Cash $560,000

Acc. Rec $4,550,000

Inven. $7,200,000

Net Prop, Plant,$18,985,000

Total Assets $31,295,000

Long Term Debt $11,010,000

Common Equity $20,285,000

Total Debt and Equity $31,295,000

At present the firms common stock is selling for a price equal to its book value, and the firms bonds are selling at par. Crawfords managers estimate that the market requires a return of 17 percent on its common stock, The firms bond command a yield to maturity of 8 percent and the firms face a tax rate of 37 percent.

A) what is crawfords weighted average cost of capital?

____%( Round to two decimal places)

B) If Crawforfds stock price were to rise such that it sold at 1.5 times book value, causing the cost of equity to fall to 15 percent, what would the firms cost of capital be (assuming the cost of debt and tax rate do not change )

___% ( Round to two decimal places)