Tanrun Inc. is expected to pay an annual dividend of $$0\mathrm{.}45$ per share in one year. Analysts expect the firm's dividends to grow by $7\%$ forever. Its stock price is $$36\mathrm{.}2$ and its beta is $1\mathrm{.}2.$ The risk$-$free rate is $2\%$ and the expected market risk premium is $4\mathrm{.}5\%.$

What is the best guess for the cost of equity?