CFG Company's return on book equity (ROE) is 10%, its dividend payout ratio is 80%, and its dividend in the current year is $1. The company's stock trades at $20. What is the firm's cost of equity? 5% 6% O 6.3% O 7% O 7.1% O 5.5%

CFG Company's return on book equity (ROE) is 10%, its dividend payout ratio is 80%, and its dividend in the current year is $1. The company's stock trades at $20. What is the firm's cost of equity? 5% 6% 6.3% 7% 7.1% 5.5%