Use this information for questions $15,16,$ and $17$:

A firm has a capital structure of $30\%$ debt, $60\%$ common equity, and $10\%$ preferred equity.

Debt: The bonds pay a $8\%$ semiannual coupon, have a $$1000$ par value, and have a maturity length of $7$ years. The market value of the bonds is

$$1100.$

Common: The firm has common stock with a beta of $1\mathrm{.}25.$

Preferred: The firm has $7\%$ preferred stock.

Market: The risk free rate on Treasury bonds is $2\%,$ while the expected return on the market is $10\%.$ The tax rate facing the firm is $40\%.$

What is the firm's cost of debt?

Round to two decimals

Enter your answer in percent and omit the $\%$ symbol. For example, if your answer is $0\mathrm{.}05347$ enter $5\mathrm{.}35$

QUESTION $16$

What is the firm's cost of equity?

Round to two decimals

Enter your answer in percent and omit the $\%$ symbol. For example, if your answer is $0\mathrm{.}05347$ enter ${5\mathrm{.}35}_{?}$