HighFlyer Corporation currently has no debt. Its tax rate is 40%, and its unlevered beta estimated by examining comparable companies to be 2.0. The 10-year bond rate is 6.25%, and the historic risk premium over the risk-free rate is 5.5%. Next year, HiFlyer expects to borrow up to 75% of its equity value to fund future growth. Calculate (i) the firms current cost of equity, and (ii) the firms cost of equity after the firm increases its leverage to 75% of equity.