An unlevered firm has a beta of 1.25 and a marginal tax rate of 21%. The riskfree rate is 5% and the market risk premium is 7%. The firm plans to recapitalize so that its capital is financed with 25% debt and 75% equity. Using the Hamada equation and CAPM, what is the recapitalized firms cost of equity capital? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.