One-third of the total value of Glaneagle Corp consists of bonds with a cost (cost of debt) of 10 percent and the rest consists of equity. High Ace Corp is identical in every respect to Glaneagle Corp except that it is financed by equity alone. High Ace Corps cost of equity is 16 percent. According to Modigliani and Miller (MM) proposition, if taxation and tax shield on interest are ignored, compute Glaneagle Corps cost of equity. (7 marks)