A company expects $119,000 EBIT every year forever. It pays 24 percent tax rate on its taxable corporate income. The company has an opportunity to either take a bank loan or issue corporate bonds. In either case, it would face a 6 percent cost of debt. However, currently, the company does not have any debt. It only has equity. The company's cost of capital is 12 percent. a. Calculate the company's cost of equity if it decides to take a $171,000 loan and use it to buy back its own shares of common stock. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Continuing part (a), calculate the levered company's weighted average cost of capital. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Cost of equity % b. WACC %