Compute the appropriate cost of capital that you should use to value a private retail company that has the following financial information: 8% cost of debt, 21% tax rate, and 2.0 debt-to-equity ratio. Also assume that the 10-Year Treasury rate is 3.5%, the expected market return is 8.5%, and the retail company competes against the peers below.

\\begin{tabular}{lccc} \\hline Company & Equity Beta & Debt/Equity & Tax Rate \\\\ Retail Company B & 1.20 & 1.50 & 0.20 \\\\ Retail Company C & 1.25 & 1.75 & 0.21 \\\\ Retail Company D & 1.45 & 2.50 & 0.21 \\\\ \\hline \\end{tabular}