Runtan Inc. has just paid an annual dividend of $$0\mathrm{.}45$ per share. Analysts expect the firm's dividends to grow by $6\%$ forever. Its stock price is $$34\mathrm{.}8$ and its beta is $1.$ The risk$-$free rate is $2\%$ and the expected return on the market portfolio is $8\%.$

What is the best guess for the cost of equity?