Using the capital asset pricing model, and the information provided below, what is a good estimate for the cost of equity capital?
YTM on five-year US Treasury note = 0.020
Five-year average annual return on S&P 500 = 0.088
Percent of equity in company's long-term capital structure = 0.71
Your company's current stock beta = 1.8
Please enter your result as a decimal, rounded to the nearest two decimal places.