Stock in Daenerys Industries has a beta of 1.12. The market risk premium is 9 percent, and T-bills are currently yielding 4.5 percent. The company's most recent dividend was $1.8 per share, and dividends are expected to grow at a 7.5 percent annual rate indefinitely. If the stock sells for $32 per share, what is your best estimate of the company's cost of equity?