Problem $16-15$ MM and Taxes

Fields & Company expects its EBIT to be $$119,000$ every year forever. The company can borrow at $6$ percent. The company currently has no debt and its cost of equity is $12$ percent. The tax rate is $24$ percent. The company borrows $$171,000$ 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$.,32\mathrm{.}16.)$

$\backslash$table$[[$a$.$ Cost of equity,$\%$