Filer Manufacturing has 11 million shares of common stock outstanding. The current share price is $68, and the book value per share is $6. Filer Manufacturing also has one bond issue outstanding with a face value of $55 million, an 8 percent coupon (semiannual payments), and selling for 104 percent of par. The issue matures in 6 years. Dividends paid by the company for the last number of years are given in the table below; the most recent dividend received by the common shareholders was the $3.85 at time 0. The companys tax rate is 35 percent. What is Filers Cost of Equity? (Note: Round growth rate to the nearest whole number)

Year	Dividend
0	3.85
-1	3.75
-2	3.50
-3	3.24
-4	3.05