The dividend for Mosab Corp. next year is expected to be $1.44. The stock is currently trading for $94 per share. Based on recent financial statements, the following information was also gathered. Net Income was recorded at $49 million. Total Owners' Equity was $807 million, and Dividends paid was listed as $20 million. The estimated cost of equity, R_E, is ________%.

Hint: You'll need to use the Earnings Retention Model covered in the Cost of Capital lecture material to estimate dividend growth.

Margin of error for correct responses: +/-.10%.