Hello, Inc. has 2,000 bonds and 300,000 shares of common stock outstanding. The common stock has a beta of 1.3 and currently trades at $18 per share. The bonds are $1,000 face value bonds with a 5% coupon rate, paid semiannually, and currently trade at $985. They mature in 8 years. The firm is in the 40% tax bracket. You have also estimated the market risk premium to be 6% and the yield on 10 year U.S. Treasuries is 4%. For this problem, you can assume that the CAPM holds. Using the Capital Asset Pricing Model (CAPM), what is the required rate of return on the firms equity?