Chambers has a debt: equity ratio of $1$:$2$ by market values and an equity beta of $0\mathrm{.}9.$ Debt is assumed to be risk free and has a pre$-$tax cost of $2\%$ per annum. The expected return on the market portfolio is $8\%$ and corporation tax is $30\%.$ Chambers wishes to undertake an APV approach for investment appraisal. What is the ungeared cost of equity for Chambers to use in such an evaluation?