ABC has a beta of .67, a variance of .0096, a growth rate of 4 percent, a stock price of $32 a share, and is expected to pay $1.03 as their next annual dividend. The market rate of return is 11.4 percent and the risk-free rate is 3.6 percent. What is ABCs cost of equity?

A. 8.02%

B. 8.83%

C. 7.48%

D. 7.22%

E. 8.06%