Stock in Country Road Industries has a beta of 1.4. The market risk premium is 8 percent, and T-bills are currently yielding 3 percent. The company's most recent dividend was $1.8 per share, and dividends are expected to grow at a 7 percent annual rate indefinitely. If the stock sells for $31 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)