Bruce & Co. expects its EBIT to be $66,000 every year forever. The company can borrow at 4 percent. The company currently has no debt, its cost of equity is 9 percent, and the tax rate is 35 percent. The company borrows $100,000 and uses the proceeds to repurchase shares.

What is the cost of equity after recapitalization? (answer as a percent rounded to 2 decimal places) Cost of equity %

What is the company's WACC? ( answer as a percent rounded to 2 decimal places) WACC %