Company A has a $21\%$ tax rate. It has issued $20,000$ shares of common stock and has equity of $$900,000.$ In addition, the corporation has debt at a before$-$tax rate of $5\mathrm{.}25\%$ in amounts as shown below on the relevant portion of the balance sheet. Further assume the company's beta is $1\mathrm{.}2.10-$year US treasuries carry a rate of $0\mathrm{.}98,$ and our analysts estimate a market return of $11\mathrm{.}8\%.$

$\backslash$table$[[$Accounts payable,$20,000],[$notes payable,$10,000],[$Accruals$,16,000]]$

Current portion of long term debt$27,260$

total current liabilities

$73,260$

LONG TERM DEBTS

$568,334$

TOTAL LIABILITIES

$641,594$

Calculate the cost of equity using CAPM. Show your work.