Tempest Manufacturing has 5 million shares of common stock outstanding. The current share price is $60 and each was originally offered at $10. Dividends this year are $0.97 per quarter, were $0.88 per quarter in 2022 and $0.80 per quarter in 2021. At the start of the year, they also issued $10 million in preferred shares at $25 each that provide a $2 dividend on an annual basis. They currently are trading for $26 per share. Tempest Manufacturing also has a bond issued and outstanding. It has a face value of $50 million and a 7% coupon paid semi-annually and sells for 103% of par. It has 10 years to maturity. The company pays 32% tax on any earnings it has. a. What is the cost of common equity?