Rossdale Co. stock currently sells for $70.89 per share and has a beta of 1.13. The market risk premium is 8.00 percent and the risk-free rate is 3.30 percent annually. The company just paid a dividend of $3.93 per share, which it has pledged to increase at an annual rate of 3.70 percent indefinitely. What is your best estimate of the company's cost of equity?

Multiple Choice

10.17%

11.73%

9.75%

10.89%

8.61%