An all-equity company is considering borrowing funds and using the proceeds to repurchase shares resulting in a D/E ratio of 1.3 for the company. The company can borrow at 6% and its current cost of equity is 13%. Assume all available earnings are immediately distributed to common shareholders and all the M&M assumptions are satisfied except the company's corporate tax rate is 30%. If the company proceeds with the capital restructuring, what will be the company's cost of equity according to M&M Proposition I with taxes?