A company expects that its annual earnings before interest and taxes will equal $95,000 in perpetuity. The company has an opportunity to take a loan (bank loan or bond issue) at an annual cost of 8 percent. However, right now, this company is unlevered and its cost of capital is 13 percent. The company's business puts it into a tax rate bracket of 23 percent. The company decides to take a $153,000 loan and use the borrowed money to buy back its own shares of common stock.

a. Calculate the company's cost of equity after it took the loan. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. Calculate the company's weighted average cost of capital after it took the loan. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)