Currently, Bloom Flowers Inc. has a capital structure consisting of 20% drobt and 80% equity. Bloom's debt currently has an 4.6% yick to maturity. The risk-free rate is 2.6%, and the market brist premium is 7%. Using the CAPM, Bloom estimates that its cost of equity is currently 15.7%. The company has a 36% tax rate. Bloom's financial Staff is considering changing its capital structure to to 40% debt and 60% equity. If the company went ahead with the Proposed change, the yield to maturity on the company's bonds would rise to 9.5%. The proposed change will have no effect on the company's tax rate. What would be the company's new cost of equity if it adopted the proposed change in capital structure? Round up the awwer to 4 decimal places.