One year from now, a firm can be worth $150 with probability 15%, $250 with probability 70%, or $350 with probability 15%.The firm has one senior bond outstanding, promising to pay $100 one year from now.It also has one junior bond outstanding, promising to pay $70 one year from now.The senior bond promises an interest rate of 6%, while the junior bond promises an interest rate of 25%.If the firm's projects require an appropriate cost of capital of 12%, then what is the firm's levered equity cost of capital? Note: Senior bonds must be paid in full before any payment can be made to junior bonds.