The Julia-n-Any Co. has expected EBIT of $600 in perpetuity, and unlevered cost of capital of 12%. Penn will raise debt with market value of $1,000 and interest of 8%. The firm will repurchase it equity using the proceeds from newly issued debt. The tax rate is 35%. Assume no financial distress in the economy. What is the firm's cost of Equity after the recapitalization?

		12.6
		13.2%
		12.8%
		13.4%
		13.0%