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

Cash and marketable securities		2,100		Short-term debt		76,200
Accounts receivable		120,600		Accounts payable		62,600
Inventory		125,600		Current liabilities		138,800
Current assets		248,300
Property, plant, and equipment		212,600		Long-term debt		209,200
Deferred taxes		45,600
Other assets		88,400		Shareholders' equity		246,900
Total		594,900		Total		594,900

The debt has an interest rate of 4.50% (short term) and 6.50% (long term). The expected rate of return on the company's shares is 13.50%. There are 7.52 million shares outstanding, and the shares are trading at 52. 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.)