Wail Inc. currently has 130,000 shares of stock outstanding with a market price of $36 a share. Wail's next year's projected dividend is $4.5 and its estimated long-term growth rate is 5%. Its outstanding debt consists of 4,560 coupon bonds each with a face value of $1,000, maturity of five years, and an annual coupon rate of 9% with semi-annual payments. The bonds are traded at par. The tax rate is 40 percent. Suppose Wail wants to get rid of all its debt and become allequity. Calculate the all equity cost of capital