A firm has common stock with a market price of $50 per share and an expected dividend of $2.81 per share at the end of the coming year. The dividends paid on the outstanding stock over the past five years are as follows:

Year	Dividend
1	$2.00
2	$2.14
3	$2.29
4	$2.45
5	$2.62

The cost of the firm's common stock equity is

		a. 11.17 percent.
		b. 5.1 percent.
		c. 8 percent.
		d. 12.6 percent