Stock in Daenerys Industries has a beta of $1\mathrm{.}28.$ The market risk premium is $9$ percent, and T$-$bills are currently yielding $2\mathrm{.}5$ percent. The company's most recent dividend was $$2$ per share, and dividends are expected to grow at a $7$ percent annual rate indefinitely. If the stock sells for $$33$ per share, what is your best estimate of the company's cost of equity?

Multiple Choice

$10\mathrm{.}82\%$

$13\mathrm{.}75\%$

$14\mathrm{.}02\%$

$13\mathrm{.}48\%$

$12\mathrm{.}35\%$