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ABC Company has a before - tax cost of debt of 4 . 6 6 % . The cost of equity of an unlevered firm

ABC Company has a before-tax cost of debt of 4.66%. The cost of equity of an unlevered firm (Note: cost of equity of unlevered firm return on assets cost of capital of the firm's assets =R A ) is 8.79%. The D / E ratio is 1.07. What is ABC's cost of equity ? Assume no taxes. Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box.

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