1. Best Midwestern is a for-profit healthcare organization, with a current stock price of $22. Its last dividend was $1, with dividends expected to grow at a constant annual rate of 8 percent. The firm's beta coefficient is 1.4; the rate of return on 20-year T-bonds is 5 percent; and the expected rate of return on the market is 11 percent. What is Best Midwestern's cost of equity estimate according to the CAPM?

   	a.	14.2%
   	b.	13.4%
   	c.	12.9%
   	d.	12.3%
   	e.	10.8%