Here is Establishment Industries' market-value balance sheet (Figures in millions):

Net working capital $ 490 Debt $ 850

Long-term assets 3,360Equity3,000

Value of firm $3,850 $3,850

The debt is yielding 5.5% and the cost of equity is 15.5%. The tax rate is 32%. Investors expect this level of debt to be permanent.

A) What is Establishment's WACC (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

B) How would the market-value balance sheet change if Establishment retired all its debt? (Do not round intermediate calculations. Round your answers to 1 decimal place.)