Cullumber Inc.s common shares currently sell for $42 each. The firms management believes that its shares should really sell for $60 each. The firm just paid an annual dividend of $2 per share and management expects those dividends to increase by 5 percent per year forever (and this is common knowledge to the market).

What does management believe is the correct cost of common equity for the firm? (Round final answer to 2 decimal places, e.g. 15.25%.)

Cost of common equity (as per firm's belief)