Stock in Thanksgiving 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? Hint: use both approaches! (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)