value 10.00 points O'Connell & Co expects its EBIT to be $49,000 every year forever. The firm can borrow at 8 percent. O'Connell currently has no debt, and its cost of equity is 11 percent and the tax rate is 35 percent. The company borrows $142,000 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., 32.16)) Cost of equity % What is the WACC? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g. 32.16)) WACC % References Worksheet Difficulty Basic Learning Objective 16-02 The impact of bankruptcy on capital structure choice