Whispering Pines Incorporated is all$-$equity$-$financed. The expected rate of return on the company's shares is $12\mathrm{.}25\%.$

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 $25\%$ debt$-$to$-$value ratio $(\frac{D}{V}=0\mathrm{.}25).$ What will be the

company's weighted$-$average cost of capital at the new capital structure? The borrowing rate is $7\mathrm{.}75\%$ and the tax rate is $21\%.$

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