Skimpole Sewing$($SS$)$ is a haberdashery manufacturer. At the end of the current year analysts expect EBIT to be $$$$2\mathrm{.}5$ million and the same earnings are expected annually in perpetuity. The company is not growing so CAPEX and new investments in net working capital are zero. Skimpole has$$ long$-$term debt of $$$$5\mathrm{.}5$ million and the cost of debt is $8\%.$ The unlevered cost of$$ equity, k Subscript Upper kU$,$ is $10\%$ and the value of$$ Skimpole's equity is $$$$13\mathrm{.}65$ million. The corporate tax rate is $30\%.$

The required return of shareholders of$$ Skimpole is $\_\_\_\_\_\_$ percent. $($Round to two decimal$$ places.$)$

$71\mathrm{.}28$

Flag question: Question $9$

Question $98$ pts

The WACC for$$ Skimpole is $\_\_\_\_\_\_$ percent. Use the numbers of Skimpole in Question $8.($Round to two decimal$$ places.$)$