Stock in Eduardo Industries has a beta of .92. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.2 percent. The most recent dividend was $2.10 per share, and dividends are expected to grow at an annual rate of 5.2 percent, indefinitely. The stock sells for $43 per share.

Using the dividend discount model, what is your estimate of the company's cost of equity?