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Garcia Company has no debt. Its cost of capital is 9.4 percent. Suppose the company converts to a debt-equity ratio of 1.0. The interest rate on the debt is 5.3 percent. Ignore taxes for this problem. a. What is the company's new cost of equity? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is its new WACC? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16