34 Plantronics Inc. expects its EBIT to be $53.000 every year forever. The firm can borrow at 7 percent. The firm currently has no debt, its cost of equity is 12 percent, and the tax rate is 25 percent. Assume the firm borrows $149.000 and uses the proceeds to repurchase shares a. What is the cost of equity after recapitalization? (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 WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 2. points 01:58:33 a. Cost of equity WACC % % b