Stock in Daenerys Industries has a beta of 1.8. The market risk premium is 5 percent, and T-bills are currently yielding 4.8 percent. The companys most recent dividend was $2.00 per share, and dividends are expected to grow at an annual rate of 5 percent indefinitely.

If the stock sells for $35 per share, what is your best estimate of the companys cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity

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