Stock in Daenerys Industries has a beta of $0\mathrm{.}87.$ The market risk premium is $10$ percent, and T$-$bills are currently yrelding $4\mathrm{.}5$ percent. The company's most recent dividend was $$1\mathrm{.}9$ per share, and dividends are expected to grow at a $6$ percent annual rate Indefinitely. If the stock sells for $$39$ per share. what is your best estimate of the company's cost of equity?

Multiple Choice

$716\%$

$10\mathrm{.}42\%$

$13\mathrm{.}2\%$

$1218\%$

$9\mathrm{.}29\%$