$($Estimated time allowance: $7$ minutes$)$ The following information is obtained from the financial statements of a corporation. Click heree for formatted shell excel file.

Market: Expected return is $12\%.$ Risk$-$free rate is $1\mathrm{.}38.$

The tax rate is $40\%.$

Common stock: Each share of stock is currently trading for $$52.$ Last year, the company paid a dividend of $$5\mathrm{.}31$ per share.

The dividend is expected to grow by $6$ percent per year indefinitely. The stock has a beta is $1\mathrm{.}20.$ The corporation has $600,000$ shares outstanding.

What is the average cost of common equity $($Re$)$ for this company?

For your answer, round to the nearest. $1\%.$ Do not use the $\%$ sign in your answer. For example, if the answer is $9\mathrm{.}23\%,$ enter your answer as $9\mathrm{.}2$; Do not enter it as $\mathrm{.}0923,0\mathrm{.}0923,$ or $9\mathrm{.}23\%.$