Pan American? Airlines' shares are currently trading at? $71.73 each. The market yield on Pan? Am's debt is 9?% and the? firm's beta is 0.5. The? T-Bill rate is 3.75?% and the expected return on the market is 8.25?%.The? company's target capital structure is 50?% debt and 50? % equity. Pan American Airlines pays a combined federal and state tax rate of 40?%. What is the estimated cost of common? equity, employing the constant growth dividend discount? model? Assume that Pan Am pays annual dividends and that the last dividend of $2.09 per share was paid yesterday. Pan Am started paying dividends 7years ago. The first dividend was ?$1.78 per share. Employing the constant growth dividend discount? model, the estimated cost of common equity for Pan Am is what percent? ?(Round to two decimal? places.)