Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 5 percent, and T-bills are currently yielding 4.9 percent. The companys most recent dividend was $1.90 per share, and dividends are expected to grow at an annual rate of 5 percent indefinitely. If the stock sells for $50 per share, what is your best estimate of the companys cost of equity?