ABC Co$.$ and XYZ Co$.$ are identical firms in all respects except for their capital structures. ABC is all$-$equity financed with $$575,000$ in stock. XYZ uses both stock and perpetual debt; its stock is worth $$287,500$ and the interest rate on its debt is $8\mathrm{.}5$ percent. Both firms expect EBIT to be $$64,000.$ Ignore taxes.

a$.$ Richard owns $$34,500$ worth of XYZ$$s stock. What rate of return is he expecting? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ Suppose Richard invests in ABC Co$.$ and uses homemade leverage to match his cash flow in part $($a$).$ Calculate his total cash flow and rate of return. $($Enter your return answer as a percent. Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the cost of equity for ABC and XYZ$?($Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$.$ What is the WACC for ABC and XYZ$?($Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$