Underestimated Inc.'s common shares currently sell for $35 each. The firm's management believes that its shares should really sell for $41 each. The firm just paid an annual dividend of $2 per share and management expects those dividends to increase by 8 percent per year forever (and this is common knowledge to the market). What is the current cost of common equity for the firm? (Round intermediate calculations to 4 decimal places, and final answer to 2 decimal places.)