A project costs $500M. It will provide additional revenue of 70M per year for 25 years while also costing 13M per year to run. It will require an addition to net working capital of 8M for the life of the project. Project will be depreciated straight line to zero over the projects life. The tax rate is 25%. The investment is expected to be sold for scrap for $6M at the end of the project. Let the T-bill rate be 1%, the companys beta is 1.4. Let the market risk premium be 6%. The preferred dividend is $6. The company has 150,000 bonds priced at $965. The coupon rate is 7% and the time to maturity is 15 years. The company has 100,000 shares of preferred priced at $85. The company has 5M shares of common priced at $65. The companys dividends growth at 2.5% per year. The next dividend is $4.

What is the cost of equity using dividend growth model?