Stock in Country Road Industries has a beta of 0.92. The market risk premium is 9.5 percent, and T-bills are currently yielding 5.5 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 6 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.)

Multiple Choice

• 13%

• 11.75%

• 9.18%

• 10.67%

• 14.24%