Stock in Daenerys Industries has a beta of $1\mathrm{.}34.$ The market risk premium is $7\mathrm{.}5$ percent, and T$-$bills are currently yielding $5\mathrm{.}5$ percent. The company's most recent dividend was $$1\mathrm{.}9$ per share, and dividends are expected to grow at a $6\mathrm{.}5$ percent annual rate indefinitely. If the stock sells for $$31$ per share, what is your best estimate of the company's cost of equity?

Multiple Choice