Stock in Country Road Industries has a beta of 0.87. The market risk premium is 9 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $34 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)

9.81%

10.82%

8.35%

9.28%

11.83%