QUESTION. The common stock of company B has a beta of 0.9. The Treasury bill rate is 3%, and the market risk premium is estimated at 6.0%. Company Bs capital structure is 30% debt, paying 5% interest rate and 70% equity. Company B pays tax at 21%. Calculate cost of equity and WACC for Company B. Present your answers in % format, rounding to two decimal points.

a. Cost of equity of company B

b. Weighted Average Cost of Capital