Spice Cat Industrial is considering a project (in year 0) that will result in an initial after-tax cash flow of $6,800 at the end of year one, and these cash flows will grow at a rate of 3% per year indefinitely.

The firm has the following capital structure. No other funding is part of the capital structure.

Equity:	25,000 shares of Common stock with a current price of $20.00 Beta of 1.345
Debt:	370 bonds, with a semi-annual 7.5% coupon, that have a current market value of $400,000 After-tax YTM 7.2%
Market:	T-Bill rate is 3.5% Market Return rate is 12.5%

To solve the cost(return) of Equity (Common Stock), what formula do you use?

What is the cost(return) of Equity (Common Stock)? (express as a percentage rounded to two decimal places, without the % sign. e.g. 12.34)