McCann Catching, Inc. has 3.00 million shares of stock outstanding. The stock currently sells for $12.79 per share. The firms debt is publicly traded and was recently quoted at 91.00% of face value. It has a total face value of $11.00 million, and it is currently priced to yield 10.00%. The risk free rate is 3.00% and the market risk premium is 8.00%. Youve estimated that the firm has a beta of 1.34. The corporate tax rate is 37.00%.

The firm is considering a $43.08 million expansion of their production facility. The project has the same risk as the firm overall and will earn $12.00 million per year for 8.00 years.

What is the cost of equity?

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Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))