Hartford Mining has 70 million shares that are currently trading for $ 3 per share and $ 60 million worth of debt. The debt is risk free and has an interest rate of 3 %, and the expected return of Hartford stock is 12 % . Suppose a mining strike causes the price of Hartford stock to fall 27 % to $ 2.19 per share. The value of the risk-free debt is unchanged. Assuming there are no taxes and the risk (unlevered beta) of Hartford's assets is unchanged, what happens to Hartford's equity cost of capital?
What is the Equity cost of capital is %. (Round to two decimal places.)