Stock in Country Road Industries has a beta of 0.74. The market risk premium is 8.5 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.7 per share, and dividends are expected to grow at a 4.5 percent annual rate indefinitely. If the stock sells for $37 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)