Stock in Country Road Industries has a beta of 0.76. The market risk premium is 9 percent, and T-bills are currently yielding 4.5 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 5.5 percent annual rate indefinitely. If the stock sells for $35 per share, what is your best estimate of the company's cost of equity.

9.32%

10.83%

7.92%

11.34%

10.32%