The Tree House has a pretax cost of debt of $6\mathrm{.}2$ percent and a return on assets of $10\mathrm{.}6$ percent. The debt$$equity ratio is $\mathrm{.}40.$ Ignore taxes. What is the cost of equity?

Multiple Choice

$8\mathrm{.}84\%$

$12\mathrm{.}76\%$

$13\mathrm{.}48\%$

$12\mathrm{.}98\%$

$12\mathrm{.}36\%$