- 9.39%

- 8.12%

- 10.64%

- 8.13%

- 7.7%

Stock in Daenerys Industries has a beta of 0.84. The market risk premium is 8.5 percent, and T-bills are currently yielding 3.5 percent. The company's most recent dividend was $1.7 per share, and dividends are expected to grow at a 3.5 percent annual rate indefinitely. If the stock sells for $38 per share, what is your best estimate of the company's cost of equity? Multiple Choice 9.39% 8.12% 10.64%