Gaucho Services starts life with all-equity financing and a cost of equity of 16%. Suppose it refinances to the following market-value capital structure: Debt (D) Equity (E) 47% 53% at TD 9.2% = a. Use MM's proposition 2 to calculate the new cost of equity. Gaucho pays taxes at a marginal rate of Te = 35%. b. Calculate Gaucho's after-tax weighted-average cost of capital. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Return on equity b. After-tax WACC % %