Stock in Daenerys Industries has a beta of 1.1. The market risk premium is 7 percent, and T-bills are currently yielding 4.8 percent. The companys most recent dividend was $1.80 per share, and dividends are expected to grow at an annual rate of 6 percent indefinitely. If the stock sells for $40 per share, what is your best estimate of the companys cost of equity?

If the stock sells for $40 per share, what is your best estimate of the companys cost of equity?