$4$Southern Home Cookin' just paid its annual dividend of $$0\mathrm{.}65$ a share. The stock has a market price of $$13$ and a beta of $1\mathrm{.}12.$ return on the U$.$S$.$ Treasury bill is $2\mathrm{.}5$ percent and the market risk premium is $6\mathrm{.}8$ percent. What is the cost of equity?

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$7\mathrm{.}32$ percent

$10\mathrm{.}04$ percent

$10\mathrm{.}12$ percent

$10\mathrm{.}37$ percent