Stock in Country Road Industries has a beta of 0.80. The market risk premium is 6 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.3 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $37 per share, what is your best estimate of the company's cost of equity? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)