Kyle Inc. expected to have free cash flow in the coming year of $10 million, and this free cash flow is expected to grow at a rate of 4% per year thereafter. Kyle Inc. has an equity cost of capital of 10%, a debt cost of capital of 7%, and it is in the 25% corporate tax bracket.

If Kyle Inc. maintains a .5 debt to equity ratio, then Kyle Inc.'s pre-tax WACC is closest to:

If Kyle Inc. currently maintains a .5 debt to equity ratio, then the value of Kyle Inc. as an all equity firm would be closest to