ACME Transmission Inc. is a tier 1 parts supplier to North American automobile manufacturers. ACME has debt-to-equity ratio of 40% and is committed to maintaining that ratio in perpetuity. ACME's cost of debt is 3%. Sperbing Inc., a competing and very similar auto parts company, has no debt and its shareholders require a return of 7%. The tax rate is 30%. What is ACME's (levered) cost of equity? Express your answer in percentage form rounded to one decimal place. Levered cost of equity = %