The Dignified Corporation's common stock has a beta of 1.2. If the risk free rate is 4.5 percent and the expected return on the market is 15%, What is Tubby Ball's cost of equity? Stock in Parrothead Industries has a beta of 1.20. The market risk-premium is 8 percent, and T-bills are currently yielding 4 percent. Parrothead's most recent dividend was $1.80 per share, and dividends are expected to grow at a 5 percent annual rate indefinitely. If the stock sells for $34 per share, what is your best estimate of Parrothead's cost of equity