The Green Balloon Just Paid Its First Annual Dividend of $.87

The Green Balloon just paid its first annual dividend of $.87 a share.The firm plans to increase the dividend by 3.2 percent per year indefinitely.What is the firm's cost of equity if the current stock price is $4.75 a share?

A) 20.35 percent
B) 22.10 percent
C) 24.42 percent
D) 18.79 percent
E) 19.98 percent