Great Seneca Inc. sells $100 million worth of 25-year to maturity 13.76% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $992 for each $1,000 bond. The firm's marginal tax rate is 30%. What is the after-tax cost of capital for this debt financing?

The Black Bird Company plans an expansion. The expansion is to be financed by selling $53 million in new debt and $148 million in new common stock. The before-tax required rate of return on debt is 5.16% percent and the required rate of return on equity is 18.52% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?