Nagel Equipment has a beta of $0\mathrm{.}88$ and an expected dividend growth rate of $3\mathrm{.}90\%$ per year. The T$-$bill rate is $4\mathrm{.}00\%,$ and the T$-$bond rate is $4\mathrm{.}85\%.$ The annual return on the stock market during the past $4$ years was $10\mathrm{.}25\%.$ Investors expect the average annual future return on the market to be $12\mathrm{.}35\%.$ Using the SML$,$ what is the firm's required rate of return? Do not round your intermediate calculations.

a$.10\mathrm{.}87\%$

b$.11\mathrm{.}45\%$

c$.15\mathrm{.}35\%$

d$.9\mathrm{.}60\%$

e$.11\mathrm{.}35\%$