Stock in Country Road Industries has a beta of 1.1. The market risk premium is 8%, and T-bills are currently yielding 5%. The company's most recent dividend was $2 per share, and dividends are expected to grow at a 7% annual rate indefinitely. If the stock sells for $40 per share, what is your best estimate of the company's cost of equity? Make sure you use both the dividend growth model and the CAPM (take the average)