Dauphin Corporation has 15% cost of equity, 40% tax rate, and debt-to-equity ratio of 30%. Fayette Corporation has 35% tax rate and debt-to-equity...

Dauphin Corporation has 15% cost of equity, 40% tax rate, and debt-to-equity ratio of 30%. Fayette Corporation has 35% tax rate and debt-to-equity ratio of 50%. Both Dauphin and Fayette are in the same business of selling automotive parts. If the riskless rate is 8% and the expected return on the market is 13%, find the cost of equity for Fayette.