Stock in Country Road Industries Has a Beta of 1

Stock in Country Road Industries has a beta of 1.62. The market risk premium is 8.2 percent while T-bills are currently yielding 2.9 percent. Country Road's last paid annual dividend was $1.87 per share and dividends are expected to grow at an annual rate of 3.8 percent indefinitely. The stock sells for $25 a share. What is the estimated cost of equity using the average return of the CAPM and the dividend discount model?

A) 13.87 percent
B) 14.06 percent
C) 14.23 percent
D) 13.38 percent
E) 14.50 percent