A company just issued $$480000$ of perpetual $5\%$ debt and used the proceeds to

repurchase stock. The company expects to generate $118000$ 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 $13\%$ and the tax rate is $20\%.$ 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 $0\mathrm{.}1234$