Meyer & Co$.$ expects its EBIT to be $$111,000$ every year forever. The firm can borrow at $8$ percent. The company currently has no debt, and its cost of equity is $12$ percent and the tax rate is $22$ percent. The company borrows $$165,000$ and uses the proceeds to repurchase shares.

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$.,32\mathrm{.}16.)$

b$.$ What is the WACC? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[$a$.,$Cost of equity,,$\%$