Best Co. has 100 million common shares outstanding currently selling for $40/share. It has a dividend yield of 3% (hint: dividend yield is calculated as dividends paid in the last 12 months divided by its current share price). You believe Best Co. can grow dividends by 5% per year for perpetuity. According to the dividend growth model how much is Best Cos cost of equity (r)?

A. r 8.00%

B. 8.00% r 9.00%

C. 9.00% r 10.00%

D. 10.00% r