Smathers Corporation stock has a beta of $1\mathrm{.}24.$ The market risk premium is $6\mathrm{.}90$ percent and the risk$-$free rate is $2\mathrm{.}82$ percent annually. What is the company's cost of equity?

A$)9\mathrm{.}63\%$

B$)7\mathrm{.}66\%$

C$)11\mathrm{.}38\%$

D$)7\mathrm{.}88\%$

E$)7\mathrm{.}44\%$