Stock in Daenerys industries has a beta of 1.07. The Market risk premium is 7.5 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $1.9 per share, and dividends are expected to grow at a 4 percent annual rate indefinitely. If the stock sell for $33 per share, what is your best estimate of the company's cost of equity?

A. 7.75%

B. 9.99%

C.12.03%

D. 11.015

E.9.07%