SAIPA Corp. is a publicly-traded company that specializes in car manufacturing. The company's debt-to-equity ratio is 1/4, cost of debt is 7%, and its equity beta is 1.5. The risk-free rate is 5%, the market risk premium is also 5%, and the corporate tax rate is 40%. Suppose SAIPA is considering the possibility of getting into speed boat manufacturing business. It plans to finance this new project equally with debt and equity. The cost of debt for the new project is 6%. Since the project is in a different industry, you decide to use the industry beta approach and find that industry beta for speed boat manufacturing business is 0.95. Using the given information, SAIPA's new cost of equity %