Admiral Company is currently an all equity firm. The firm has a cost of capital of 10.5 percent. Admiral is considering switching to a debt-equity ratio of 0.70 with a pretax cost of debt of 7.4 percent. What will the firm's cost of equity be if it makes the switch? Ignore taxes.

		13.57%
		13.08%
		13.25%
		12.67%
		12.36%