Stock in Jansen Industries has a beta of 1.10. The market risk premium is 7 percent, and T-bills are currently yielding 4.7 percent. The company’s most recent dividend was $3.15 per share, and dividends are expected to grow at an annual rate of 4.1 percent indefinitely.
If the stock sells for $49 per share, what is your best estimate of the company’s cost of equity?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.