Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend of $$2\mathrm{.}00$ last year to its shareholders and plans to increase the dividend annually at the rate of $3\mathrm{.}0\%.$ It currently has $2,000,000$ common shares outstanding. The shares currently sell for $$16$ each. The common stock beta is $1\mathrm{.}1.$ Easy Car Corp. also has $10,000$ semiannual bonds outstanding with a coupon rate of $7\%,$ a maturity of $29$ years, and a par value of $$1,000.$ The bonds currently have a yield to maturity $($YTM$)$ of $12\%.$ The risk$-$free rate is $3\%$ and the market risk premium is $8\%.$

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

When answering this problem enter your answer using percentage notation but do not use the $\%$ symbol and use two decimals $($rounding$).$ For example, if your answer is $0\mathrm{.}10469$ then enter $10\mathrm{.}47$ ; if your answer is $10\%$ then enter $10\mathrm{.}00$

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