Steve's Specialties, Inc. paid its dividend yesterday, which as $ 2.00. The dividend has been growing at a rate of 0.015 and is expected to continue indefinitely at that rate. Steve's common stock is currently trading at 21.00 per share. The firms beta is 0.90. Treasuries (T-bills) are currently yielding 0.035, Average return on the market is 0.12. Using the DCF approach, what is Steve's cost of retained earnings? (Answer in decimal form to 4 places. Do not use a percent sign, i.e 0.9999)