Problem $14-3$ Calculating Cost of Equity $[$LO$1]$

Stock in Jansen Industries has a beta of $1\mathrm{.}2.$ The market risk premium is $6$ percent, and T$-$bills are currently yielding $5\mathrm{.}3$ percent. The company$$s most recent dividend was $$1\mathrm{.}70$ per share, and dividends are expected to grow at an annual rate of $5$ percent indefinitely. If the stock sells for $$35$ per share, what is your best estimate of the company$$s cost of equity? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$