Pan American Airlines' shares are currently trading at $73.75 each. The yield on Pan Am's debt is 6% and the firm's beta is 0.7. The T-Bill rate is 4.5% and the expected return on the market is 8%. The company's target capital structure is 50% debt and 50% equity. Pan American Airlines pays a combined federal and state tax rate of 20%. 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.)