Stock in Country Road Industries has a beta of 0.89. The market risk premium is 9.5 percent, and T-bills are currently yielding 4.5 percent. The company's most recent dividend was $1.8 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? (Do not round your intermediate calculations.)

11.94%

8.95%

10.14%

10.93%

12.96%