The debt has an interest rate of 6.25% (short term) and 8.25% (long term). The expected rate of return on the company's shares is 15.25%. There are 7.57 million shares outstanding, and the shares are trading at $45. The tax rate is 30%. Assume the company issues $50 million in new equity and uses the proceeds to retire long-term debt. Also assume the the company's borrowing rates are unchanged and the short-term debt is permanent.

Calculate the cost of equity after the capital restructuring. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Cost of equity %

Calculate the WACC after the capital restructuring. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

WACC %

The simplified balance sheet for Rensselaer Felt (in thousands) is as follows Cash and marketable securities Accounts receivable Inventory Current assets Property, plant, and equipment $2,600 Short-term debt 121,100 126,100 Current liabilities $76,700 63,100 $139,800 Accounts payable $249,800 305,300 Long-ter m debt 209,700 46,100 247,400 $643,000 Deferred taxes Shareholders' equity Other assets Total 87.900 $643,000 Total