You are given the following information about The Midnight Cheers Inc.: This company can borrow money by selling corporate bonds. If it does so, the interest rate on this debt will be 7 %. . Right now, though, it does not have any bonds. It is all-equity and the annual cost of capital equals 14 %. It expects to be receiving $155,000 in annual EBIT forever. Its corporate income is taxed each year at 23% tax rate. a. Assume that this company borrowed $198,000 and used the money to buy back Its common stock shares. In this case, the company's cost of equity equals: (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Continuing part (a)- In this case, the company's weighted average cost of capital equals: (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)