The expected return on the market is 12 percent. The common stock of Trompeta Inc. has a beta of 1.25 and the company just paid an annual dividend of $.40. Trompeta Inc.'s dividends are expected to grow indefinitely at 5 percent annually, and the most recent stock price for the company is $70. Calculate the cost of equity. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places e g. 32.18)