Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend of $2.00 last year to its shareholders and plans to increase the dividend annually at the rate of 4.0%. It currently has 2,000,000 common shares outstanding. The shares currently sell for $17 each. The common stock beta is 0.8. Easy Car Corp. also has 40,000 semiannual bonds outstanding with a coupon rate of 9%, a maturity of 29 years, and a par value of $1,000. The bonds currently have a yield to maturity (YTM) of 7%. The risk-free rate is 2% and the market risk premium is 6%.

What is the best estimate of the cost of equity for Easy Car Corp. if the corporate tax rate is 30%?