Bluegrass Mint Company has a debt-equity ratio of 0.43. The required return on the company's unlevered equity is 15.4% and the pretax cost of the firm's debt is 5.4%. Sales revenue for the company is expected to remain stable indefinitely at last year's level of $19,327,416.5. Variable costs amount to 59% of sales. The tax rate is 26% and the company distributes all its earnings as dividends at the end of each year.

What is the required return on the firm's levered equity?