Stock in Daenerys Industries has a beta of $1\mathrm{.}55.$ The market risk premium is $7$ percent, and T$-$bills are currently yielding $5$ percent. The company's most recent dividend was $$1\mathrm{.}9$ per share, and dividends are expected to grow at a $7\mathrm{.}5$ percent annual rate indefinitely. If the stock sells for $$32$ per share, what is your best estimate of the company's cost of equity?

Multiple Choice

$13\mathrm{.}88\%$

$8\mathrm{.}1\%$

$14\mathrm{.}87\%$

$15\mathrm{.}85\%$

$11\mathrm{.}19\%$