You purchase a small business that is valued at $188447. You decide to borrow $62916 at 8% interest and pay for the rest with equity. The debt is due in one year, and you expect the firm to have cash flows of $67332 in one year. Your firm is risky, so its unlevered cost of equity is 4 percentage points above its cost of debt. What is the cost of equity of the levered firm?