Question $11$

Southern Home Cooking just paid its annual dividend of $$\mathrm{.}75$ a share. The stock has a market price of $$16\mathrm{.}80$ and a beta of $1\mathrm{.}41.$ The

return on the U$.$S$.$ Treasury bill is $2\mathrm{.}7$ percent and the market risk premium is $7\mathrm{.}1$ percent. What is the cost of equity?

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$12\mathrm{.}71$ percent

$10\mathrm{.}37$ percent

$11\mathrm{.}98$ percent

$10\mathrm{.}79$ percent

$12\mathrm{.}45$ percent