Suppose you work for a chemical company that is considering investing in its own power generation facility. Since that is somewhat different from the company's typical investment projects, you have conducted an analysis to determine the asset (unlevered) beta for the power industry, which is 0.40. If the company were to finance the project with 50% debt (assume debt beta = 0) and 50% equity, and the risk-free rate and market rate of return are 5% and 10%, respectively, what is the cost of equity capital (in percent)