Nagel Equipment has a beta of 0.80 and an expected dividend growth rate of 3.10% per year. The T-bill rate is 4.00%, and the T-bond rate is 4.90%. The annual return on the stock market during the past 4 years was 10.25%. Investors expect the average annual future return on the market to be 13.15%. Using the SML, what is the firm's required rate of return? Do not round your intermediate calculations.

a. 11.50%

b. 14.60%

c. 11.32%

d. 9.18%

e. 10.52%