Stock in ABC Enterprises has a beta of 1.06. The market risk premium is 6.9 percent, and T-bills are currently yielding 3.75 percent. ABC's most recent dividend was $1.56 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $43.25 a share, what is your best estimate of ABC's cost of equity? 9.09 percent 9.69 percent 8.82 percent 7.78 percent 9.41 percent