A firm maintains a debt-to-equity ratio of 0.43 and has a tax rate of 30% . The company does not issue preferred stock but has a pre-tax cost of debt of 7.25% . There are 20,000 shares of the company's stock outstanding with a beta of 0.90 and market price of $28.80. Yesterday, the company issued an annual dividend in the amount of $1.33 per share. Dividends are expected to grow at 3.30% indefinitely. What is the company's cost of equity capital? 4.77% 7.92% 11.37% 8.07%