An unlevered company with a cost of debt of 9% and a cost of equity of 16% is considering borrowing funds. The borrowed funds would be used to repurchase shares, resulting in a D/E ratio of 0.9 for the company. 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%. According to M&M Proposition II with taxes, what will be this company's cost of equity if it proceeds with the capital restructuring?