The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows Cash and marketable securities 1,400 Accounts receivable Short-tere debt Accounts payable 75,700 63,100 Inventory 120,100 125,100 Current liabilities 137,000 Current assets 246,000 Property, plant, and equipment 212,100 Long-term debt 200,700 Deferred taxes 45,100 Other assets 50,900 Shareholders equity Total 245,400 302,900 Total The debt has an interest rate of 5.75% (short term) and 775% (ong term) The expected rate of return on the company's shares s 14.75% There are 7.47 milion shares outstanding, and the shares are trading at 47. 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.) Cast of equity b. Calculate the WACC after the capital restructuring (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) Weighed average cost of capital The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows Cash and marketable securities 1,400 Accounts receivable Short-tere debt Accounts payable 75,700 63,100 Inventory 120,100 125,100 Current liabilities 137,000 Current assets 246,000 Property, plant, and equipment 212,100 Long-term debt 200,700 Deferred taxes 45,100 Other assets 50,900 Shareholders equity Total 245,400 302,900 Total The debt has an interest rate of 5.75% (short term) and 775% (ong term) The expected rate of return on the company's shares s 14.75% There are 7.47 milion shares outstanding, and the shares are trading at 47. 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.) Cast of equity b. Calculate the WACC after the capital restructuring (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) Weighed average cost of capital