Cost of Equity: CAPM Booher Book Stores has a beta of 0.4. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 8%. The market risk premium is 7.5%, and the return on an average stock in the market last year was 14%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places. %