The capital structure for BlueScope Steel $($BSL$)$ is $90\%$ equity and $10\%$ debt. Its

cost of equity is currently Re $=10\mathrm{.}4\%$ and its before$-$tax cost of debt is

Rd

Ra $=7\mathrm{.}5\%.$ What is the cost of equity for an unlisted steel manufacturer with

very similar assets to those of BSL and a debt$-$to$-$equity ratio of D$/$ E

$=0\mathrm{.}65.$ if

its cost of debt is the same as BSC$\text{'}$s cost of debt? $($Express your answer as a

number rounded to four decimal places. For example, if the