Upper Roads Is an All-Equity Financed Firm

Upper Roads is an all-equity financed firm.The beta is 0.89,the market risk premium is 7.2 percent,and the tax rate is 34 percent.The firm just issued its annual dividend of $1.04 per share and announced that future dividends will increase by 3 percent annually.The stock sells for $22 a share.What is the cost of equity?

A) 9) 26%
B) 9) 15%
C) 10.19%
D) 7) 87%
E) 8) 78%