A firms unlevered cost of capital is 9%. The firm has a market value of equity of $10 million and $4 million in outstanding debt at an interest rate of 4%. The corporate tax rate is 40%. What is the firms cost of equity?

Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit the % sign in your response. For example, an answer of 15.39% should be entered as 15.39.

Numeric Response