A company $($X Ltd$.)$ wants to diversify into garments business and make a new division. It has found a comparable garments company of approximately same characteristics as the proposed division. It has $$e $=1\mathrm{.}35$ and debt ratio of $0\mathrm{.}8.$ The corporate tax rate is $40\%.$ X Ltd$.$ will have a debt ratio of $50\%$ for the proposed business. Find the cost of equity for the new division with risk$-$free rate and market premium of $5\%$ and $10\%$ respectively.