Question: Paul Sharp is CFO of Fast Rocket Inc. He tries to determine the cost of equity financing for his company. The stock has a beta of 1.53. Paul estimated that the market return is 8.02%. The current rate for 10-year Treasury Bonds is 2.34%. Calculate cost of common equity financing using CAPM - SML formula.
Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box)