You are tasked with finding the cost of equity of company 'XYZ'. The current risk-free rate is 2%, and the equity market return 8%. The company is privately held, so you use its competitor's asset Beta of 2 to calculate XYX 's Beta. The competior has a D/E ratio of 40%,XYZ has a D/E ratio of 20%. The tax rate is 25%. What is XYZ's cost of equity? Please answer by completing all answer boxes in the solutions template