Company XYZ expects an EBIT of $960,000$ every year forever. The firm currently has no debt, and its cost of equity is $16\%.$ The firm can borrow $$3,200,000$ at $10\%$ and buy back shares. The corporate tax rate is $35\%$ and the media industry cost of equity is $12\%.$ What would be this company's WACC after the recapitalization?

The answer $($WACC$)$ should be $12\mathrm{.}97\%.$