Stock in Dragula Industries has a beta of 1.1. The market risk premium is 7 percent, and T-bills are currently yielding 5.00 percent. The companys most recent dividend was $1.40 per share, and dividends are expected to grow at a 7.0 percent annual rate 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 and round your final answer to 2 decimal places. (e.g., 32.16))