Simon Software Co. is trying to estimate its optimal capital structure. Right now, Simon has a capital structure that consists of 30% debt and 70% equity, based on market values. (Its D/S ratio is 0.4286.) The risk-free rate is 6% and the market risk premium, rM rRF, is 5%. Currently the companys cost of equity, which is based on the CAPM, is 12% and its tax rate is 40%. What would be Simons estimated cost of equity if it were to change its capital structure to 50% debt and 50% equity?