Ben's Ice Cream Just Paid Their Annual Dividend of

Ben's Ice Cream just paid their annual dividend of $.75 a share.The stock has a market price of $32 and a beta of .90.The return on the U.S.Treasury bill is 4 percent and the market has a 12 percent rate of return.What is the cost of equity?

A) 7.24 percent
B) 8.67 percent
C) 11.20 percent
D) 12.92 percent
E) 14.80 percent