The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows: Cash and marketable securities Accounts receivable Inventory Current assets Property, plant, and equipment Deferred taxes Other assets Total 3,100 Short-term debt 121,600 126,600 251,300 Accounts payable 77,200 63,600 Current liabilities 140,800 213,600 46,600 87,400 Long-term debt 210,200 Shareholders' equity 247,900 598,900 Total 598,900 The debt has an interest rate of 7.50% (short term) and 9.50% (long term). The expected rate of return on the company's shares is 16.50%. There are 7.62 million shares outstanding, and the shares are trading at 40. 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.) Answer is complete but not entirely correct. Cost of equity 16.51 % b. Calculate the WACC after the capital restructuring. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Weighed-average cost of capital 11.74 %