JJ firm issues preferred dividends at an annual rate of $4.12. Its current preferred stock price is $25.65. Assume that the equity beta for JJ is 1.25. The Yield on 10-year treasuries is 3.23%, and that the market risk premium for the year is 5%. The company's EPS expected growth is 3%. For this year, the dividends for JJ firm are the same for common and preferred stock; additionally the price for common stock is $31. What is the common cost of equity for JJ Firm using the CAPM method?