Hartford Mining has 70 million shares that are currently trading for $6 per share and $ 110 million worth of debt. The debt is risk free and has an interest rate of 2%, and the expected return of Hartford stock is 9%. Suppose a mining strike causes the price of Hartford stock to fall 22% to

$4.68 per share. The value of therisk-free debt is unchanged. Assuming there are no taxes and the risk(unlevered beta) ofHartford's assets isunchanged, what happens toHartford's equity cost ofcapital?

Equity cost of capital is ..............%. (Round to two decimalplaces.)