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MEMERGENCY! Could somebody help me to get the right answer, please? The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is

image text in transcribedimage text in transcribedMEMERGENCY! Could somebody help me to get the right answer, please?

The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows: Cash and marketable Short-term debt 2,300 76,400 securities Accounts receivable Accounts payable liabilities 120,800 62,800 139,200 Inventory 125,800 248,900 Current Current assets Property, plant, and equipment Deferred taxes 209,400 212,800 Long-term debt 45,800 88,200 Shareholders' equity Other assets 247,100 595,700 Total 595,700 Total The debt has an interest rate of 4.00% (short term) and 6.00% (long term). The expected rate of return on the company's shares is 13.00%. There are 7.54 million shares outstanding, and the shares are trading at 54. The tax rate is 25%. Assume the company issues 50 million in new equity and uses the proceeds to retire long-term debt. Also assume the company's borrowing rates are unchanged and the short-term debt is permanent. Use the three-step procedure. a. Calculate the cost of equity after the capital restructuring. (Do not round intermediate calculations. Enter your answer as rounded to 2 decimal places.) percent Cost of equity % b. Calculate the WACC after the capital restructuring. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Weighed-average cost of capital

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