Upper Roads Is an All-Equity Financed Firm

Upper Roads is an all-equity financed firm.The beta is .75,the market risk premium is 8 percent,and the tax rate is 35 percent.The firm just issued its annual dividend of $1.42 per share and announced that future dividends will increase by 5 percent annually.The stock sells for $27 a share.What is the cost of equity?

A) 10.26%
B) 9.38%
C) 11.19%
D) 10.52%
E) 11.78%