Pan American Airlines' shares are currently trading at $65.23 each. The yield on Pan Am's debt is 6% and the firm's beta is 0.6. The T-Bill rate is 4.5% and the expected return on the market is 10.5%.The company's target capital structure is 60% debt and 40% equity. Pan American Airlines pays a combined federal and state tax rate of 30%.What is the estimated cost of common equity, employing the Capital Asset Pricing Model (CAPM)?

The estimated cost of common equity for Pan American Airlines is __%.

(Round to two decimal places.)