You are reading an analyst reports that claims that banks collectively are cheap, because they are trading at 0.80 times book value of equity. You believe that the truth is that banks are perceived as riskier than they used to be. If the current return on equity for banks is 10% and the expected growth rate in perpetuity is 2%, what is the cost of equity that investors are attaching to banks? (Assume that banks collectively are in stable growth)