New Inc. is a listed company in Australia. Its current before interest after-tax operating cash flow is $100 million. The cash flow is expected to grow at 6% per annum over the next three years, after which the growth will fall to 3% per annum and stay at this rate forever. The following information is also available:

Tax rate	30%
Risk-free rate	4%
Market return	12%
Equity beta	2
Cost of debt	7%
D/E	60%

Given the above data, New Inc.s cost of equity is around: