Milwaukee Telecom (MT) just paid a dividend (D0) of $2.44 per share; future dividends are expected to grow 3% per year indefinitely. The firms stock is not publicly traded but data from comparable firms shows an average beta of 1.28; these firms had average debt-equity ratios of 51 and an average tax rate of 28%. MT has a debt-equity ratio of 82 and a tax rate of 32%. The current yield on 10-year U.S. Treasury bonds is 2.8%, and the expected return on the S&P 500 is 11.6%. What would be the firms current cost of common stock?