Floyd Industries stock has a beta of 0.8. The company just paid a dividend of $0.7, and the dividends are expected to grow at 5 %. The expected return of the market is 11%, and Treasury bills are yielding 4.7%. The most recent stock price for Floyd is $61.

Calculate the cost of equity using the DDM method. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)