The total market value of the common stock of Company A is $8 million, and the total value of its debt is $2 million. The treasurer estimates that the beta of the stock is currently 1.5 and that the market risk premium is 6%. The Treasury bill rate is 4%. Assume for simplicity that Company A debt is risk-free. The Companys tax rate is 35%. a) What is the pre-tax cost of capital for Company A? b) What is the WACC for Company A?