An all-equity firm has a cost of capital of 13.3 percent. The firm is considering switching to a debt-equity ratio of 0.35 with a pretax cost of debt of 7.5 percent. The tax rate is 35 percent. What will be the firm's levered cost of equity?

Multiple Choice

• 14.62%

• 16.07%

• 15.25%

• 15.38%

• 14.21%