An all-equity (unlevered) firm's RA = 14%. The cost of debt (RD)  is 10% and the tax rate is 30%.

 

If this firm is changed to a firm with 63% equity and the remaining percentage of debt, find the new cost of equity (RE) using the Proposition-II of the 'with tax' model.  

 

(Write the answer in decimal form, using properly-rounded to 4-decimal places.