$211$ point

The future earnings, dividends, and common stock price of McManus Technologies Inc. are expected to grow $6\%$ per year. McManus's common stock currently sells for $$86\mathrm{.}92$ per share, its last year's dividend was $$9\mathrm{.}92.$ The risk premium is $6\mathrm{.}11\%.$ If the firm's beta is $2\mathrm{.}1,$ the risk$-$free rate is $5\mathrm{.}89\%,$ and the average return on the market is $12\mathrm{.}90\%.$ If the firm's bonds earn a return of $116\mathrm{.}80\%,$ based on the bond$-$yield$-$plus$-$risk$-$premium approach, what will be firm's cost of equity?

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