Rossdale Company stock currently sells for $$72\mathrm{.}43$ per share and has a beta of $1\mathrm{.}20.$ The market risk premium is $7\mathrm{.}30$ percent and the risk$-$free rate is $2\mathrm{.}98$ percent annually. The company just paid a dividend of $$4\mathrm{.}21$ per share, which it has pledged to increase at an annual rate of $3\mathrm{.}65$ percent indefinitely. What is your best estimate of the company's cost of equity?

Multiple Choice

$9\mathrm{.}44\%$

$11\mathrm{.}53\%$

$9\mathrm{.}85\%$

$8\mathrm{.}16\%$

$10\mathrm{.}71\%$