The Market Rate of Return Is 11

The market rate of return is 11.8 percent and the risk-free rate is 3.45 percent.Galaxy Co.has 36 percent more systematic risk than the overall market and has a dividend growth rate of 3.5 percent.The firm's stock is currently selling for $42 a share and has a dividend yield of 2.8 percent.What is the firm's cost of equity?

A) 10.55 percent
B) 15.31 percent
C) 19.82 percent
D) 16.28 percent
E) 21.11 percent