$8.$ Alice Corporations has two divisions. The one in the high$-$risk industry has a beta of $1\mathrm{.}5$ and can be financed optimally in line with others in the industry at $25\%$ debt and $75\%$ equity. The low risk division has a beta of $\mathrm{.}8$ and based on industry averages, can be financed optimally at $50\%$ debt and $50\%$ equity. Assuming the risk$-$free rate of return on $10-$year government securities is $2\mathrm{.}7\%$ and the market risk premium is $5\%.$ What is the estimated cost of common equity for the high$-$risk division?