Clancy's just paid its annual dividend of $1.48 per share. Analysts expect the stock price to increase by 2.1 percent annually and value the stock at $14.65 per share currently. What is the cost of equity for this firm?

Select one:

A. 13.87 percent

B. 14.06 percent

C. 13.32 percent

D. 12.41 percent

E. 12.20 percent