Stock in Daenerys Industries has a beta of 1.05. The market risk premium is 10 percent, and T-bills are currently yielding 2.5 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 6 percent annual rate indefinitely. If the stock sells for $31 per share, what is your best estimate of the company's cost of equity?

a 11.64%

b 12.75%

c 12.5%

d 13%

e 10.38%