ANPTW has paid dividends that have increased on average by 5 % every year for the last 5 years. This years dividend was $3.25. The current stock price is $136.40. In addition, ANPTW equity beta has been estimated at .85. The risk free rate is estimated at 2.2% and the market risk premium is 5.05%. What is the best estimate of ANPTW's cost of equity? Explain why you picked the answer you did, be careful: Do not explain how to calculate, explain why you picked it.

Group of answer choices

A. 6.50 percent

B. 7.00 percent

C. 7.50 percent

D. 7.75 percent

8.00

8.51