As a financial analyst, you are given the following information on a firm: the firm has a Debt-Equity ratio of 0.35. R0 for this firm equals to 13.1%. The pre-tax cost of firms debt is 6.4%. Earnings before tax (and interest) is $7,720,000 per year and remains stable indefinitely. This firm faces a tax rate of 21% and distributes all earnings as dividends at the end of each year.

What is the required return on the firms levered equity? [hint: the M&M proposition]