Q Ltd, an airplane parts manufacturer, currently has $25 million in outstanding debt and has 10 million shares outstanding. The market value per share is $25. The company is currently rated A, its bonds have a yield to maturity of 10%, and the current beta of the stock is 1.06. The risk-free rate is 8% now, and the companys tax is 40%. The risk premium for the equity is 5.5%. (a) What is the companys current weighted average cost of capital? (b) The company is considering a repurchase of 4 million shares at $25 per share with new debt. It is estimated that this will push the companys rating down to a B (with a new yield to maturity of 13% for the firms debt ). What will the companys beta and WACC be after the stock repurchase?