Stock in Country Road Industries has a beta of 1.44. The market risk premium is 7.5 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 6.5 percent annual rate indefinitely. If the stock sells for $32 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)

rev: 09_20_2012

12.82%

13.81%

11.13%

14.8%

9.04%