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

Cash and marketable securities		2,600		Short-term debt		76,700
Accounts receivable		121,100		Accounts payable		63,100
Inventory		126,100		Current liabilities		139,800
Current assets		249,800
Property, plant, and equipment		213,100		Long-term debt		209,700
Deferred taxes		46,100
Other assets		87,900		Shareholders' equity		247,400
Total		596,900		Total		596,900

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 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.)