Hometown Industries Has Paid Annual Dividends of $2

Hometown Industries has paid annual dividends of $2.00, $2.08, $2.15, and $2.25 per share over the last four years, respectively. The stock is currently selling for $46.80 a share. What is this firm's
Cost of equity?

A) 7.14 percent
B) 7.67 percent
C) 8.39 percent
D) 8.56 percent
E) 9.01 percent