Whispering Pines Incorporated is all$-$equity$-$financed. The expected rate of return on the company's shares is $9\mathrm{.}75\%.$

a$.$ What is the opportunity cost of capital for an average$-$risk Whispering Pines investment?

Note: Enter your answer as a percent rounded to $2$ decimal places.

b$.$ Suppose the company issues debt, repurchases shares, and moves to a $23\%$ debt$-$to$-$value ratio $($D $=0\mathrm{.}23).$ What will

be the company's weighted$-$average cost of capital at the new capital structure? The borrowing rate is $5\mathrm{.}25\%$ and the tax rate is $21\%.$

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

a$.$ Opportunity cost of capital$=9\mathrm{.}75\%$

b$.$ Weighted$-$average cost of capital$=?$