Ninecent Corporation has a target capital structure of 65 percent common stock, 10 percent preferred stock, and 25 perce

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Ninecent Corporation has a target capital structure of 65
percent common stock, 10 percent preferred stock, and 25 percent
debt. Its cost of equity is 10 percent, the cost of preferred stock
is 4 percent, and the pretax cost of debt is 5 percent. The
relevant tax rate is 22 percent.
a. What is the company’s WACC? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
b. What is the aftertax cost of debt? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)