QUESTION 1 Common stock from Sensors R Us paid stockholders an initial dividend of $1.10 per share on an average price of $25.10 last year. The company expects to grow the dividend rate at a maximum of 2.0% per year. The stock volatility is 1.19, and other stocks in the same industry are paying an average of 5.13% per year dividend. U.S. Treasury bills are returning 0.75%. Determine Sensors R Us's cost of equity capital last year using the CAPM. Express your answer as a percentage and round your answer to the nearest hundredth of a percentage point