The following data pertains to Radek Corp., a manufacturer of office supplies (dollar amounts in thousands).

Total assets $8,731

Interest-bearing debt $4,239

Average borrowing rate for debt 10.0%

Common equity:

Book value $3,130

Market value $16,284

Marginal income tax rate 35%

Market equity beta 1.33

Using this informationand assuming that the risk-free rate is 5.3% and the market risk premium is 7.3%, calculate Radek's cost of equity capital, using the capital asset pricing model.