Small Things Inc. (STI) currently has a bond issue outstanding with 13 years to maturity, a face value of $1,000, and a coupon rate of 6.00% annually. The bond currently sells for 120 percent of par. STI's common stock has a beta of 0.85, and currently sells at $56 per share. Treasury bills yield 2% and the expected rate of return on the market is 8%. STI's total bond debt has a face value of $8,000,000 and there are 400,000 shares outstanding. The marginal tax rate is 35%.

What is STI's cost of equity? Enter your answer as a percentage rounded to 2 decimal places. (An answer of 5.12% would be entered as 5.12).