Item 1

Pogo Stick Co can issue debt yielding 11 percent. The company is paying at a 30 percent tax rate.

What is the aftertax cost of debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Cost of debt %

Item-2

Waste Disposal Systems has an aftertax cost of debt of 6.5 percent. With a tax rate of 45 percent, what can you assume the yield is on the debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Yield %