Learn Catteine and sports... CAFFEINE AND EXE... How Caffeine Affec... Coffee, Caffeine an... G what are the effects... Chapter 16 Saved 4. Meyer & Co. expects its EBIT to be $99,000 every year forever. The firm can borrow at 9 percent. The company currently has no debt, and its cost of equity is 14 percent and the tax rate is 24 percent. The company borrows $156,000 and uses the proceeds to repurchase shares. 10 points eBook 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., 32.16.) b. What is the WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Print References Cost of equity 1 % a. b. WACC %