Problem 14-15 MM and Taxes Cede & Co. expects its EBIT to be $58,000 every year forever. The firm can borrow at 6 percent. The firm currently has no debt, its cost of equity is 11 percent, and the tax rate is 35 percent. Assume the firm borrows $159,000 and uses the proceeds to repurchase shares. What is the cost of equity after recapitalization? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity 08% What is the WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC J%