Merk is currently all-equity financed with a value of $118 million and cost of equity. What is the new cost of equity for Merk, if its capital structure is changed to include $18 million of debt with a cost of debt of 5%?Answer in percent points and include four decimal places; do not include the '%' in your answer, e.g., 10.1234 would be entered if the answer was 10.1234%.