Assume that you are a consultant to Broske Inc., and you have been provided with the following data about the company: Dividend expected at the end of next year D₁ = $0.67; current stock price P₀ = $27.50; and expected annual growth rate of the dividend g = .08 (8.00%) (constant). What is the cost of equity from retained earnings based on the DCF approach (constant dividend growth model)? (switch your calculator to 4 decimal places)

Group of answer choices

9.42%

10.44%

9.91%

11.51%

10.96%