Question: Fields & Company expects its EBIT to be $163,000 every year forever. The firm can borrow at 9 percent. The company currently has no debt,

Fields & Company expects its EBIT to be $163,000 every year forever. The firm can borrow at 9 percent. The company currently has no debt, and its cost of equity is 15 percent and the tax rate is 25 percent. The company borrows $204,000 and uses the proceeds to repurchase shares. a. What is the cost of equity after recapitalization? 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.)

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