A company's stock has a beta of 0.9. The stock currently sells for $150 per share. The company just paid a dividend of $2 per share and future dividends are expected to grow at 5% per year. If the expected return on the market is 8.75%, what is the cost of equity capital for this company?

Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit the % sign in your response. For example, an answer of 15.39% should be entered as 15.39.