Stock in Country Road Industries has a beta of 1.3. The market risk premium is 9 percent, and T-bills are currently yielding 2.5 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 5.5 percent annual rate indefinitely. If the stock sells for $30 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)

Multiple Choice

• 10.95%

• 13.19%

• 14.2%

• 12.18%

• 11.77%