A company is 30% financed by risk-free debt. The interest rate is 8%, the expected market risk
premium is 6%, and the beta of the company’s common stock is .69.
a. What is the company cost of capital?
b. What is the after-tax WACC, assuming that the company pays tax at a 30% rate?
NB (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)