Spam Corp. is financed entirely by common stock and has a beta of 1.65. The firm is expected to generate a level, perpetual stream of earnings and dividends. The stock has a price-earnings ratio of 7.50 and a cost of equity of 13.33%. The company's stock is selling for $26. Now the firm decides to repurchase half of its shares and substitute an equal value of debt. The debt is risk-free, with an interest rate of 6.5%. The company is exempt from corporate income taxes. Assume MM are correct. a. Calculate the cost of equity after the refinancing. (Enter your answer as a percent rounded to 2 decimal places.) ences e. Calculate the stock's beta after the refinancing, (Round your answer to 1 decimal place.) % % a. Cost of equity b. Cost of capital c. Price-earnings ratio d. Stock price e. Stock's beta