Rossdale Company stock currently sells for $$72\mathrm{.}65$ per share and has a beta of $1\mathrm{.}21.$ The market return is $7\mathrm{.}20$ percent and the risk$-$free rate is $2\mathrm{.}94$ percent annually. The company will pay a dividend of $$4\mathrm{.}25$ per share next year, which it has pledged to increase at an annual rate of $3\mathrm{.}55$ percent indefinitely. What is your best estimate of the company's cost of equity?

$9\mathrm{.}61\%$

$9\mathrm{.}40\%$

$10\mathrm{.}63\%$

$8\mathrm{.}75\%$

$11\mathrm{.}65\%$

$8\mathrm{.}10\%$