Dusit is financed 21% by debt yielding 8.8%. Investors require a return of 15.8% on Dusits equity.

a.	What is the companys weighted-average cost of capital if the corporate tax rate is 35%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Weighted-average cost of capital

%

b.	What would be the companys cost of capital if it were exempted from corporate tax? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Weighted-average cost of capital

%