At the beginning of last year CanPlus Inc. had equity of $2.5 million and a share price of $18. For the year, net income was $300,000, and dividends were $0.45 per share on 215,000 outstanding share. CanPlus Inc. cost of equity capital is most likely?

a) 10.25%

b) 9.81%

c) 8.33%

d) 10.83%

e) 12.30%