Stock in Country Road Industries has a beta of 1.13. The market risk premium is 8 percent, and T-bills are currently yielding 3.5 percent. The company's most recent dividend was $2 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sells for $32 per share, what is your best estimate of the company's cost of equity?

Group of answer choices

9.74%

12.54%

8.58%

10.5%

11.52%