Cede & Co. expects its EBIT to be $55,000 every year forever. The firm can borrow at 7 percent. The firm currently has no debt, its cost of equity is 11 percent, and the tax rate is 22 percent. Assume the firm borrows $153,000 and uses the proceeds to repurchase shares.

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