Using the build-up method and assuming that no adjustment for industry risk is required, calculate an equity discount rate for a small company, given the following information:

• Equity risk premium = 5.0 percent
• Mid-cap equity risk premium = 3.5 percent
• Small stock risk premium = 4.2 percent
• Income return on long-term bonds = 5.1 percent
• Total return on intermediate-term bonds = 5.3 percent
• Company-specific risk premium = 3.0 percent
• 20-year Treasury bond yield as of the valuation date = 4.5 percent