XOM is considering a change in its capital structure. XOM will increase its debt level to a capital structure with 60% debt and repurchase shares with the extra money that it borrows. XOM will retire old debt to issue new debt, and the rate on the new debt will be 10%. XOM currently has $50M in debt carrying a rate of 8%, and its stock price is $40 per share with 2.5 million shares outstanding. XOM is a zero-growth firm and pays all its earnings as dividends. The firm's EBIT is $30 million, and its tax rate is 30%. The market return is 12% and risk-free rate is 5%. XOM has a beta of 1.6.

What are XOM's new beta and cost of equity if it has 60% debt?