Calculating Cost of Equity using CAPM

ABC Corporation is evaluating its cost of equity to better understand how much it must earn to satisfy its investors. The company estimates that the required rate of return on its equity can be calculated using the Capital Asset Pricing Model (CAPM). According to the CAPM, the cost of equity is equal to the risk-free rate plus the equity beta multiplied by the market risk premium.

If the risk-free rate is 3%, the equity beta is 1.2, and the market risk premium is 5%, what is the cost of equity for ABC Corporation?