Floyd Industries stock has a beta of 1.4. The company just paid a dividend of $1.09, and the dividends are expected to grow at 3 %. The expected return of the market is 12%, and Treasury bills are yielding 3.9%. The most recent stock price for Floyd is $68. Calculate the cost of equity using the SML method. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)