Rollins Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Rollins' beta is 1.2 , the risk-free rate is 3 percent, and the market risk premium is 4 percent. Rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $31 per share, and has a growth rate of 5 percent. The firm's policy is to use a risk premium of 3 percentage points when using the bond-yield-plus-risk-premium method to find r_s. The firm's marginal tax rate is 30 percent.

What is Rollins cost of equity when using the DCF approach? Express your answer in percentage (without the % sign) and round it to two decimal places.