Commercial Construction Builders Has a Beta of 1

Commercial Construction Builders has a beta of 1.34, a dividend growth rate of 2.1 percent for the foreseeable future, a stock price of $15 per share, and an expected annual dividend of $0.45 per share next year.The market rate of return is 12.8 percent and the risk-free rate is 4.2 percent.What is the firm's average cost of equity?

A) 8.79 percent
B) 10.41 percent
C) 10.35 percent
D) 10.77 percent
E) 8.51 percent