Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: the riskfree rate of return is 3.50%; the market risk premium is 6.00%; and Scanlons beta is 0.85. Based on the CAPM approach, what is the cost of equity from retained earnings? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.