Flagstaff Enterprises expected to have free cash flow in the coming year of $8 million, and this free cash flow is expected to grow at a rate of 3% per year thereafter. Flagstaff has an equity cost of capital of 13%, a debt cost of capital of 7%, and it has a 35% corporate tax rate.

1) If Flagstaff maintains a .5 debt to equity ratio, then what would be Flagstaff's pre-tax WACC?

Fomula : rwacc: [(E / ( E + D)) x rE] + [(D / ( E + D )) x rD]

But How can I deducte E and D ?