Uknowwho Inc. has a target capital structure of 50% debt and 50% common equity, with no preferred stock. The yield to maturity on the companys outstanding bonds is 12%, and its tax rate is 30%.

(a). If Uknowwhos cost of equity is 12%, what is its WACC?

(b). Assume that the company issues new common stock sells at $200 and the flotation cost is 5%. The company paid dividend $4 per share for last year and it is expected to grow at 9% per year. What is its WACC if equity capital is raised from this new issuing?

Show work without Excel.