1. Kellys Tiki Hut has experienced growth of 11% per year over the past 15 years and expects this to continue. Three years ago, they began paying dividends. The first dividend was $.90. The current price of share of Kellys stock is $35.99. What would you estimate Kellys cost of equity to be?

a. 13.78%

b. 11.04%

c. 10.54%

d. 14.79%