Jensen Inc. needs to calculate its cost of capital. The company's capital structure has 60 percent debt and 40 percent common stock. The company has bonds outstanding with 25 years to maturity. The bonds have a 10 percent annual coupon, a face value of $1,000, and a current price of $1,252. The company uses the CAPM to calculate the cost of common stock. Coupon interest is paid annually. Currently, the risk-free rate is 3 percent and the market risk premium, Irm -rf), equals 6 percent. The company's common stock has a beta of 1.8. The company's tax rate is 25 percent. Please answer the following three questions. 5 pts Question 20 What is the cost of common equity of Jensen, Inc.? (Express your answer as a decimal accurate to four decimal places)