Firm currently has a capital structure consisting of debt and common equity. It has 500,000 shares outstanding priced at $50.00 per share with a beta of 2.0. The yield to maturity on its bonds is 6%, and the total value of the debt is $50,000,000. The risk-free rate is 3% and the market risk premium is 10%. The firm's CFO would like to have a capital structure that is 100% equity. To do this, she intends to issue more stock at the current market price and use the cash to repurchase all of its outstanding bonds. The tax rate is 30%. Compute the new cost of equity after the repurchase and show all work.