A company just issued $$417000$ of perpetual $5\%$ debt and used the proceeds to

repurchase stock. The company expects to generate $110000$ of EBIT in perpetuity.

The company distributes all its earnings as dividends at the end of each year. The

firm's unlevered cost of capital is $10\%$ and the tax rate is $30\%.$ What is the required

return on the firm's levered equity $($report the cost of equity as a decimal number

with four decimal places such as $0\mathrm{.}1234$