Angelo's Office Supply Just Paid an Annual Dividend of $2

Angelo's Office Supply just paid an annual dividend of $2.40 a share. The market price of the stock is $31.80 and the growth rate is 2.5 %. What is the firm's cost of equity?

A) 10.05 %
B) 10.12 %
C) 10.16 %
D) 10.24 %
E) 10.32 %