Pine Corporation has debt with both a face and a market value of $1,540,000. This debt has a coupon rate of 6 percent and pays interest annually. The expected earnings before interest and taxes are $830,000, the tax rate is 25 percent, and the unlevered cost of capital is 10.4 percent. What is the firm's cost of equity?

		11.45%
		11.73%
		11.92%
		12.03%
		12.21%