Greshak Corp. is attempting to estimate the cost of its common equity. Research indicates that the current risk free rate (based on U.S. Treasury securities) is 2.50%, Greshak's beta is .90, the expected return on the equity market next year is 9%, and the current equity risk premium is 7.5%. Based on this information, what is the estimated cost of Greshak's equity? You must show ALL work (including calculator keystrokes) to receive credit. Use at least 4 decimal places in your work and answer (1.55% = .0155).