Stock in Country Road Industries has a beta of 0.88. The market risk premium is 8.5 percent, and T-bills are currently yielding 3 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $37 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.) 8.37% 9.49% 8.5% 7.84% 10.48%