LaVie Inc. is evaluating an average risk project. Their B is estimated at 1.10. The risk free rate is 4%. The return on the market is 13%. They have publicly traded bonds with a 12% coupon rate that have a 10% yield to maturity. Their tax rate is 21%. They have 25 million shares of common stock outstanding. The current stock price is $25 per share. Their book value of debt is $200 million, which they think is very close to the market value of debt. The firm does not have preferred stocks. Blank #1: What is the firm's cost of equity? (10 points Blank #2: What is the firm's weighted average cost of capital (WACC)? (10 points)