To understand the advantage of debt capital from a tax perspective in the United States, determine the before-tax and approximated after-tax weighted average costs of capital if a project is funded 35%-65% (D-E mix) with debt capital borrowed at 14% per year. A recent study indicates that corporate equity funds earn 11% per year and that the effective tax rate is 32% for the year. The tax advantage reduces the WACC from % to % per year