Fire Hydrant Pet Supply Just Paid Its First Annual Dividend

Fire Hydrant Pet Supply just paid its first annual dividend of $0.75 a share.The firm plans to increase the dividend by 2.9 percent per year indefinitely.What is the firm's cost of equity if the current stock price is $16.90 per share?

A) 14.64 percent
B) 7.47 percent
C) 9.78 percent
D) 4.33 percent
E) 5.34 percent