Cede & Co. expects its EBIT to be $57,000 every year forever. The firm can borrow at 9 percent. The firm currently has no debt, its cost of equity is 13 percent, and the tax rate is 35 percent. Assume the firm borrows $157,000 and uses the proceeds to repurchase shares.

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