Garcia Company has no debt. Its cost of capital is $10$ percent. Suppose the company converts to a debt$-$equity ratio of $1.$ The interest

rate on the debt is $7\mathrm{.}1$ percent. Ignore taxes for this problem.

a$.$ What is the company's new cost of equity?

Note: 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 its new WACC?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$