Wail Inc. currently has 130,000 shares of stock outstanding with a market price of $36 a share. Wail's next year's projected dividend is $4.5 and its estimated long-term growth rate is 5%. Its outstanding debt consists of 4, 800 coupon bonds each with a face value of $1,000, maturity of five years, and an annual coupon rate of 8% with semi-annual payments. The bonds are traded at $950 per contract. The tax rate is 40 percent. (1) Suppose Wail wants to get rid of all its debt and become all-equity. Calculate the all-equity cost of capital. Also, what is the all-equity firm value? (2) Now instead suppose Wail wants to recapitalize to have a debt-to-equity ratio of 0.5. After recapitalization, what is the cost of equity? What is the weighted average cost of capital? (For returns, round the final answer to the second decimal in percentage, i.e., 0.00%. For value, round to whole dollar. Final answers other than this format may result in a point loss.)