Stock in Daenerys Industries has a beta of 1.3. The market risk premium is 8 percent, and T-bills are currently yielding 4.5 percent. The companys most recent dividend was $1.70 per share, and dividends are expected to grow at an annual rate of 7 percent indefinitely. If the stock sells for $34 per share, what is your best estimate of the companys cost of equity?