Stock in Country Road Industries has a beta of 1.06. The market risk premium is 7 percent, and T-bills are currently yielding 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.)

12.42%

10.93%

7.12%

9.22%

11.67%