Suppose Microsoft has no debt and a WACC of 8.7%. The average debt-to-value ratio for the software industry is 5.4%. What would be its cost of equity if it took on the average amount of debt for its industry at a cost of debt of 5.6% and use the proceedings to buy back shares? (Assuming there's no corporate tax or other frictions in the capital markets) The cost of equity is \%. (Round to two decimal places.)