The return on the market is 11.8%. A firm's beta is 1.6 and the risk-free rate is 4.8%. The stock is currently selling for $20.16 and the next dividend is expected to be $2.17. The firm's growth rate is 5.2%. The cost of debt is 12.4%. Assume the equity risk premium is 3.6%. Estimate the cost of equity using the bond yield plus a premium approach.