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

Cash and marketable securities		1,700		Short-term debt		75,800
Accounts receivable		120,200		Accounts payable		62,200
Inventory		125,200		Current liabilities		138,000
Current assets		247,100
Property, plant, and equipment		212,200		Long-term debt		208,800
Deferred taxes		45,200
Other assets		88,800		Shareholders' equity		246,500
Total		593,300		Total		593,300

The debt has an interest rate of 5.50% (short term) and 7.50% (long term). The expected rate of return on the company's shares is 14.50%. There are 7.48 million shares outstanding, and the shares are trading at 48. 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.)