Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D$0=$ $$2\mathrm{.}00$; P$0=$ $$40\mathrm{.}00$; and g $=10\mathrm{.}00\%($constant$).$ Based on the DCF approach, what is the cost of equity from retained earnings? Do not round your intermediate calculations.

A$.15\mathrm{.}5\%$ B$.14\mathrm{.}5\%$ C $13\mathrm{.}5\%$ D$.12\mathrm{.}5\%$