The DJH Corporation just paid a dividend of $ 3.50 . It expects its cash dividends to grow 4.7 % per year forever. DJH has a debt ratio of L = 34 %. Its borrowing rate is rd = 6.0 %. DJH pays corporate taxes at the rate of 38 %, rf = 3.2 %, rM = 9.8 %, and DJH's common stock is currently selling for $ 25 per share. What is DJH's expected cost of stock? Short your answer to the nearest .1%. Show your answer as a whole number, thus 4.2% should be 4.2 rather than .042.
Please provide detailed calculation steps.