Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 10.4% as long as it finances at its target capital structure which calls for 49% and the rest in common equity. Its last dividend (D0) was $1.73 its expected constant future growth rate is 6.0%, and its common stock sells for $25.37. EEC's tax rate is 31%. What is EEC's cost of Retained Earnings? State your answer as a percentage to 2 decimal places.