1. Dunlap Corp. has a market capitalization of $40 million, and $60 million in outstanding debt. Dunlaps levered stock has a beta of 1.8. The debt yield to maturity is 10.32%. The bond rating is CCC, which has an average default rate of 12.20%. The lost rate for its debt is 60%. Its corporate tax rate is 20%. What is Dunlaps unlevered cost of capital? What is Dunlaps weighted average cost of capital? [hint: If you cant find risk free rate or expected market return, you can use 1.50% as risk free rate and 7.00% as the expected return of the market. Please keep two digits after the decimal point for your answers.]