Suppose Australian Express Inc. has no debt and an equity cost of capital of $11\mathrm{.}2\%.$ The average debt$-$to$-$value ratio for the credit services industry $($the industry that Australian Express Inc. is operating in$)$ is $35\%.$ What would its cost of equity be if it took on the average amount of debt for its industry at a cost of debt of $2\%,$ assume that Australian Express Inc. is operating in perfect capital markets?