Stock in CDB Industries has a beta of 1.12. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.2 percent. CDBs most recent dividend was $3.60 per share, and dividends are expected to grow at a 5.2 percent annual rate indefinitely.

Required:

If the stock sells for $58 per share, what is your best estimate of CDBs cost of equity? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

cost of equity: %