Rossdale Company stock currently sells for $$71\mathrm{.}99$ per share and has a beta of $1\mathrm{.}18.$ The market risk premium is $7\mathrm{.}50$ percent and the risk$-$free rate is $3\mathrm{.}06$ percent annually. The company just paid a dividend of $$4\mathrm{.}13$ per share, which it has pledged to increase at an annual rate of $3\mathrm{.}85$ percent indefinitely. What is your best estimate of the company's cost of equity?

Multiple Choice

$10\mathrm{.}86\%$

$9\mathrm{.}58\%$

$8\mathrm{.}30\%$

$10\mathrm{.}00\%$

$11\mathrm{.}69\%$