The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in thousands) is as follows: Cash and marketable securities Accounts receivable Inventory Accounts payable 3,400 Short-term debt 121,900 126,900 Current liabilities 77,500 63,900 141,400 Current assets 252,200 Property, plant, and equipment 213,900 Long-term debt 210,500 Deferred taxes Other assets Total 45,900 87,100 Shareholders' equity 600,100 Total 248,200 600,100 The debt has an interest rate of 8.25 % (short term) and 10.25% (long term). The expected rate of return on the company's shares is 17.25%. There are 7.65 million shares outstanding, and the shares are trading at 37. 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.) Cost of equity %