Fields & Company expects its EBIT to be $$111,000$ every year forever. The company can

borrow at $8$ percent. The company currently has no debt and its cost of equity is $12$

percent. The tax rate is $22$ percent. The company borrows $$165,000$ 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$.,$

$32\mathrm{.}16.)$

b$.$ What is the WACC? $($Do not round intermediate calculations and enter your answer

as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$