Stock in Country Road Industries has a beta of 1.12. The market risk premium is 8 percent, and T-bills are currently yielding 4.5 percent. The company's most recent dividend was $1.7 per share, and dividends are expected to grow at a 6.5 percent annual rate indefinitely. If the stock sells for $33 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)

Multiple Choice

• 8.42%

• 12.72%

• 10.4%

• 11.99%

• 13.46%