Cede & Co. expects its EBIT to be $73,374 every year forever. The firm can borrow at 11%. Cede currently has no debt, and its cost of equity is 26%. The tax rate is 31%.

A) What is the firm's cost of equity capital after borrowing $45,000 and using the proceeds to repurchase shares (i.e., after recapitalization)?(Answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations.)

B) What is the firm's WACC after borrowing $45,000 and using the proceeds to repurchase shares (i.e., after recapitalization)?(Answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations.)