A firm currently has a capital structure consisting of debt and common equity. It has $19,300,000 of equity outstanding with a beta of 0.60. The risk-free rate is 2% and the market risk premium is 8%. The yield to maturity on its bonds is 4%, and it has 10,000 bonds outstanding currently selling at $960 per bond. The firm's CFO would like to issue $4,800,000 of new debt at the current price to repurchase stock. The tax rate is 21%. Compute the new cost of equity after the repurchase.