Summerdahl Resort's common stock is currently trading at $$37$ a share. The stock is expected to pay a dividend of $$2\mathrm{.}50$ a share at the end of the year $($D$1=$ $$2\mathrm{.}50),$ and the dividend is expected to grow at a constant rate of $7\%$ a year. What is the cost of common equity? Round your answer to two decimal places.