Welling Inc. has a target debt$-$equity ratio of $0\mathrm{.}77.$ Its WACC is $9\mathrm{.}7\%,$ and the tax

rate is $35\%.$

a$.$ If the company's cost of equity is $14\%,$ what is its pre$-$tax cost of debt? $($Do not

round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Cost of debt

$\%$

b$.$ If instead you know that the after$-$tax cost of debt is $6\mathrm{.}8\%,$ what is the cost of

equity? $($Do not round intermediate calculations. Round the final answer to $2$

decimal places.$)$

Cost of equity

$\%$