Stock of Derek Inc. has a beta of 1.10. Return of marketportfolio is 13 percent

Stock of Derek Inc. has a beta of 1.10. Return of marketportfolio is 13 percent and t-bills are currently yielding 5percent. The company has just paid $2.00 per share and dividendsare expected to grow at 7 percent annual rate indefinitely. If thestocks are traded at $36 per share then what is your best estimateof the Derek Inc.s cost of equity?(4)