Stock in CDB Industries has a beta of 1.06. The market risk premium is 7.1 percent, and T-bills are currently yielding 4.1 percent. CDB’s most recent dividend was $3.00 per share, and dividends are expected to grow at a 5.1 percent annual rate indefinitely.
Required: If the stock sells for $52 per share, what is your best estimate of CDB’s cost of equity?
(Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)