Assume that today's share price of Target is $135.62 and that the forward earnings capitalization rate (K-g) is 5.35% as of today.

Now, assume the long-run geometric earnings growth rate is projected to be 6.29%. With this information, compute the Cost of Equity based on capitalized forward earnings capitalization rate for Target. State in percent form without writing the percent sign and compute to the nearest basis point. (e.g. 23.456% would be answered as 23.46 to be correct).