ABC stock has a beta that is 13 percent higher than the overall market beta. The risk-free rate is 3.1 percent, and the market rate of return is 10.6 percent. What is the company's cost of equity?

Assume the S&P 500 has a dividend yield of 3.2 percent. Analysts expect overall dividends to grow at 5.4 percent annually. Treasury bills yield 2.1 percent. The expected market rate of return is ____ percent, and the market risk premium is ____ percent.