A company has debt with both a face and a market value of $1,830,000. This debt has a coupon rate of 5.1 percent and pays interest annually. The expected earnings before interest and taxes are $850,000, the tax rate is 25 percent, and the unlevered cost of capital is 9.8 percent. What is the firm's cost of equity?

11.14%

11.06%

10.98%

10.90%

10.82%