Stock in Country Road Industries has a beta of 1.41. The market risk premium is 8 percent, and T-bills are currently yielding 4 percent. The company's most recent dividend was $2 per share, and dividends are expected to grow at a 6.5 percent annual rate indefinitely. If the stock sells for $34 per share, what is your best estimate of the company's cost of equity? (Do not round your intermediate calculations.)
a) 9.64%
b) 14.02%
c) 11.4%
d) 12.76%
e) 15.28%