P14-3 Calculating Cost of Equity (LO1] 12 1 points Stock in Country Road Industries has a beta of 0.8. The market risk premium is 10 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 6 percent annual rate indefinitely. If the stock sells for $40 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.) References Multiple Choice 11.5% 9.8% 8.7% 10.51% 11%