Stock in Country Road Industries has a beta of 0.74. The market risk premium is 10 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.7 per share, and dividends are expected to grow at a 4.5 percent annual rate indefinitely. If the stock sells for $33 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)

Multiple Choice

• 9.36%

• 11.4%

• 9.88%

• 10.64%

• 8.44%