A stock is selling at $$115\mathrm{.}00.$ The firm is going to pay the next dividend $($D$1)$ at $$4\mathrm{.}00$ per share. Assume that the growth rate g$=0\%.$ What would be the cost of equity raised by selling new stocks, assuming that the flotation cost is zero? $($Hint: Find the required rate of return.$)$

A$.$

$0\mathrm{.}87\%$

B$.$

$1\mathrm{.}52\%$

C$.$

$2\mathrm{.}17\%$

D$.$

$2\mathrm{.}83\%$

E$.$

$3\mathrm{.}48\%$

F$.$

$4\mathrm{.}13\%$

G$.$

$4\mathrm{.}78\%$

H$.$

$5\mathrm{.}43\%$