Blevita, Inc. (BIC) is financed with perpetual debt and equity capital. BIC's (before tax) cost of debt is 12% and BIC's unlevered cost of capital is 23%. BIC's management plans to raise additional perpetual debt capital and to use these proceeds to repurchase an equal amount of its own stock--going from a D/E-ratio of 0.2 to a D/E-ratio of 1.3. The tax rate is 40% and interest payments are tax deductible. Assuming the cost of debt does not change, what would be the cost of equity after the recapitalization?