Fields & Company expects its EBIT to be $$125,000$ every year forever. The firm can borrow at $7$ percent. The company currently has no debt, and its cost of equity is $12$ percent and the tax rate is $24$ percent. The company borrows $$205,000$ 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$.,32\mathrm{.}16.)$

b$.$ What is the WACC? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$