Calculating Cost of Equity Using CAPM

ABC Corporation is evaluating its cost of equity using the Capital Asset Pricing Model (CAPM). ABC Corporation has a beta of 1.2, the risk-free rate is 3%, and the expected market return is 8%. The CFO is considering a new project and wants to ensure the cost of equity is accurately calculated to assess the project's feasibility.

Using the CAPM formula, which is:

Cost of Equity = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)

What is the calculated cost of equity for ABC Corporation?