Max Motors has a target capital structure of $40\%$ debt and $60\%$ common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is $8\%,$ and its tax rate is $25\%.$Max's CFO estimates that the company's WACC is $12\mathrm{.}20\%.$ What is Max's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.