Suppose Kirby is currently distributing 45% of its earnings in the form of cash dividends. It has also historically generated an average return on equity (ROE) of 14%. Kirby's estimated growth rate is %. The current risk-free rate of return (rRF) is 3.86% while the market risk premium is 6.63%. The D'Amico Company has a beta of 0.78. Using the capital asset pricing model (CAPM) approach, D'Amico's cost of equity is