Cede & Co. expects its EBIT to be $155,000 every year forever. The company can borrow at 7 percent. The company currently has no debt and its cost of equity is 14 percent and the tax rate is 23 percent. The company borrows $198,000 and uses the proceeds to repurchase shares.

a.	What is the cost of equity after recapitalization? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b.	What is the WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)