Tim's Tools Just Issued a Dividend of $2

Tim's Tools just issued a dividend of $2.22 per share on its common stock.The company is expected to maintain a constant 2.8 percent growth rate in its dividends indefinitely.If the stock sells for $19 a share, what is the company's cost of equity?

A) 12.81 percent
B) 13.37 percent
C) 9.94 percent
D) 14.81 percent
E) 10.46 percent