Fields \& Company expects its EBIT to be $125,000 every year forever. The company can borrow at 7 percent. The company currently has no debt and its cost of equity is 12 percent. The tax rate is 24 percent. The company borrows $205,000 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.) Answer is complete but not entirely correct