Stock in Country Road Industries has a beta of 1.56. The market risk premium is 7 percent, and T-bills are currently yielding 4.5 percent. The company's most recent dividend was $2 per share, and dividends are expected to grow at a 7 percent annual rate indefinitely. If the stock sells for $36 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)