The historical returns data for the past three years for AAA's stock is -6.0%, 15%, 15% and that of the market portfolio is 10%, 10% and 16%. If the risk-free rate of return is 2 %, what is the cost of equity capital according to the CAPM? Calculate your answer in decimal form, and precise to three digits after the comma.

The market value of AAA's common stock is 40 million and the market value of the risk-free debt is 60 million. The beta of the company's common stock is 1.31, and the expected market risk premium is 0.067. If the Treasury bill rate is 6%.

What is the firm's cost of capital, in decimal form, precise to three digits after the comma?