Gateway Inc. has a target capital structure of 55 percent equity and 45 percent debt, with no preferred stock. The company has sufficient retained earnings to fund the equity portion of its capital budget. The yield to maturity on the companys outstanding bonds is 8 percent, and its tax rate is 30 percent. Grateways CFO estimates that the companys weighted average cost of capital is 8.12 percent. What is the companys cost of equity