Assume the following parameters hold for a company trying to compute its weighted average cost of capital before undergoing a major expansion project: Tax rate = 20%. 15-year, 12% coupon, semiannual payment noncallable bonds sell for $1,150.00. New bonds will be privately placed with no flotation cost. 10%, $100 par value, quarterly dividend, perpetual preferred stock sells for $110.10. Common stock sells for $45. D0 = $4.15 and g = 4%. b = 1.3; rRF = 8%; RPM = 5%. Bond-Yield Risk Premium = 4%. Target capital structure: 25% debt, 15% preferred, 60% common equity. What is the company's annual cost of common equity according to the Dividend Discount Model? Please express your answer in decimal form (not percentage). Keep at least 4 decimal places.