Whispering Pines Incorporated is all-equity-financed. The expected rate of return on the companys shares is 11.25%. 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.

Suppose the company issues debt, repurchases shares, and moves to a 27% debt-to-value ratio (D/V = 0.27). What will be the companys weighted-average cost of capital at the new capital structure? The borrowing rate is 6.75% and the tax rate is 21%.