Assume that Expansion Ltd is a diversified company that is considering an expansion project in a mining division. The company has a target debt-equity ratio of 1/2 and this ratio will not be affected by the new project. The company has a cost of debt as 9 percent. The companys manager has identified Dig-it-out Ltd as a company with the same business risk as the new project. Dig-it-out Ltd has a levered equity beta of 1.5 and it has a debt-equity ratio of 1/3. Dig-it-out Ltd has a cost of debt equals to 8 percent. Estimate the projects cost of equity for Expansion if the risk premium of the market portfolio is 6 percent and the risk-free rate of interest is 3 percent