Wrong Formula?

In the bottom of printed page 107 in the corporate finance book, they give the equation for finding the cost of equity as : Re = Ro + (Ro-Rd)(1-T)(D/E) when I think it should be: Re = Ro + (Ro-Rd(1-T))(D/E) Is this correct?

equation is fine as is. I am sure u can c how to derive it on the web. Ur just used to seein t after debt…