Stock in Daenerys Industries has a beta of $1\mathrm{.}1.$ The market risk premium is $7$ percent, and

T$-$bills are currently yielding $4\mathrm{.}8$ percent. The company's most recent dividend was $$1\mathrm{.}80$

per share, and dividends are expected to grow at an annual rate of $6$ percent

indefinitely.

If the stock sells for $$40$ per share, what is your best estimate of the company's cost of

equity? $($Do not round intermediate calculations and enter your answer as a percent

rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Cost of equity