ABC Company has a before-tax cost of debt of 3.42%. 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 = RA) is 8.77%. The D/E ratio is 3.60. 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.