Stock in Country Road Industries has a beta of 1.31. The market risk premium is 8 percent, and T-bills are currently yielding 3 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 7 percent annual rate indefinitely. If the stock sells for $37 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)

13.48%

12.49%

12.99%

11.22%