Stock in Country Road Industries has a beta of 1.01. The market risk premium is 9 percent, and T-bills are currently yielding 5.5 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 7.5 percent annual rate indefinitely. If the stock sells for $34 per share, what is your best estimate of the company's cost of equity?
- 12.56%
- 13.57%
- 14.59%
- 11%
- 9.03%