The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows:

Cash and marketable securities		2,700		Short-term debt		76,800
Accounts receivable		121,200		Accounts payable		63,200
Inventory		126,200		Current liabilities		140,000
Current assets		250,100
Property, plant, and equipment		213,200		Long-term debt		209,800
Deferred taxes		46,200
Other assets		87,800		Shareholders' equity		247,500
Total		597,300		Total		597,300

The debt has an interest rate of 6.50% (short term) and 8.50% (long term). The expected rate of return on the company's shares is 15.50%. There are 7.58 million shares outstanding, and the shares are trading at 44. The tax rate is 25%. Assume the company issues 50 million in new equity and uses the proceeds to retire long-term debt. Also assume the company's borrowing rates are unchanged and the short-term debt is permanent. Use the three-step procedure. a. 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.)

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