Assume the equity beta for Johnson & Johnson is 0.55. The yield on 10 year Treasuries is 3%, and you estimate the market risk premium to be 6%. Furthermore, Johnson & Johnson is to pay out dividends at an annual rate of $2.81 at the end of the year. Its current stock price is $92.00, and you expect dividends to increase at a constant rate of 4% per year. Estimate J&Js cost of equity using the CAPM and the constant dividend growth model.