A company currently has no debt. Its cost of equity is 8.1% and its tax rate is 30%. It is considering restructuring to and maintaining a D/E ratio of 0.27. The firm's cost of debt, R_D, is estimated at 4.3% in that case. The cost of equity, R_E, under the new capital structure is ____%.

Do NOT round intermediate work. Round your final answer to 2 decimal places (ex: if your answer is .123456 or 12.3456%, enter 12.35).

Margin of error for correct responses: +/- .05