Bruce & Co. expects its EBIT to be $61,000 every year forever. The company can borrow at 7 percent. The company currently has no debt, its cost of equity is 14 percent, and the tax rate is 35 percent. The company borrows $148,000 and uses the proceeds to repurchase shares.

What is the cost of equity after recapitalization? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity

%

What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

WACC

%