The total market value of the common stock of the Okefenokee Real Estate Company is $$12\mathrm{.}5$ million, and the total value of its debt is $$7\mathrm{.}9$ million. The treasurer estimates that the beta of the stock is currently $1\mathrm{.}6$ and that the expected risk premium on the market is $7\%.$ The Treasury bill rate is $5\%.$ Assume for simplicity that OkefenoSuppose the company wants to diversify into the manufacture of rose$-$colored spectacles. The beta of unleveraged optical manufacturers is $0\mathrm{.}90.$ Estimate the required return on Okefenokee's new venture.