Estimating Cost of Equity Using CAPM

ABC Corporation is considering two projects that are expected to generate cash flows for the next three years. The company uses the Capital Asset Pricing Model (CAPM) to calculate the cost of equity. The risk-free rate is currently 3%, the expected market return is 8%, and ABC Corporation's beta is 1.5.

If ABC Corporation wants to assess the cost of equity, what is the company's estimated cost of equity?