Question 1. Sparky, Inc., has found that its cost of equity is 19 percent, and its after-tax cost of debt is 10 percent. If the firm is financed with 86 percent equity and the remainder of the financing is in debt, what is the WACC (weighted average cost of capital) for Sparky if it is subject to a 25% tax rate? Answer to the nearest 0.01%

Question 2. Palo Verde, Inc., has found that its cost of equity is 11 percent, and its (before-tax) cost of debt is 7 percent. If the firm is financed with 70 percent equity and the remainder of the financing is in debt, what is the WACC (weighted average cost of capital) for Palo Verde if it is subject to a 25% tax rate? Answer to the nearest 0.01%