Garcia Company has no debt. Its cost of capital is

$11\mathrm{.}1$

$$percent$.$ Suppose the company converts to a debt

$-$

equity ratio of

$1.$

$$The interest rate on the debt is

$8\mathrm{.}2$

$$percent$.$ Ignore taxes for this problem.

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

$.$

$,$

$32\mathrm{.}16$

$.$

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

$.$

$,$

$32\mathrm{.}16$

$.$