Stock in Daenerys Industries has a beta of $1\mathrm{.}01.$ The market risk premium is $9\mathrm{.}5$ percent, and T$-$bills are currently yielding $3\mathrm{.}5$ percent. The company's most recent dividend was $$1\mathrm{.}7$ per share, and dividends are expected to grow at a $5\mathrm{.}5$ percent annual rate indefinitely. If the stock sells for $$32$ per share, what is your best estimate of the company's cost of equity?

Multiple Choice

$10\mathrm{.}53\%$

$12\mathrm{.}1\%$

$11\mathrm{.}1\%$

$13\mathrm{.}1\%$

$9\mathrm{.}56\%$