O$$Connell & Co$.$ expects its EBIT to be $$75,000$ every year forever. The firm can borrow at $12$ percent. O$$Connell currently has no debt, and its cost of equity is $15$ percent and the tax rate is $35$ percent. The company borrows $$152,000$ and uses the proceeds to repurchase shares.

What is the cost of equity after recapitalization? $($Do not round intermediate calculations and round your final answer to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16))$

Cost of equity

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What is the WACC? $($Do not round intermediate calculations and round your final answer to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16))$

WACC

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