15. Tangential is an all-equity financed firm. The beta is .90, the market risk premium is 5.7 percent, and the tax rate is 21 percent. The firm just issued its annual dividend of $5.50 per share and announced that future dividends will increase by 4.5 percent annually. The stock sells for $53.25 per share. What is the cost of equity?

Multiple Choice

a. 14.83%

b. 4.05%

c. 10.32%

d. 10.78%

e. 15.29%