The DJH Corporation just paid a dividend of $ 1.18 . It expects its cash dividends to grow 7.0 % per year forever. DJH has a debt ratio of L = 37 %. Its borrowing rate is rd = 7.0 %. DJH pays corporate taxes at the rate of 45 %, rf = 4.2 %, rM = 8.9 %, and DJH's common stock is currently selling for $ 32 per share. What is DJH's expected cost of stock? Short your answer to the nearest .1%.