Berlioz Inc. is trying to estimate its cost of common equity, and it has the following information. The firm has a beta of 0.90, the before-tax cost of the firm's debt is 7.75%, and the firm estimates that the risk-free rate is 4% while the current market risk premium is 5%. Berlioz stock currently sells for $35.00 per share. The firm pays dividends annually and expects dividends to grow at a constant rate of 2% indefinitely. The most recent dividend per share, paid yesterday, was $2.00. Finally, the firm has a marginal tax rate of 35%. The cost of common equity using the dividend-growth model is Select one: A. 11.32%. B. 11.50%. C. 7.83%. D. 11.72%