Company A's cost of capital information is as follows:

Stock price per share = $120, Expected Dividends to be paid within the next one year = $12, Expected annual growth rate = 2%, Debt to total capital ratio = 60%, Marginal tax rate = 35%, Cost of debt = 5%. Use Dividend Discount Model, calculate Company A's cost of equity.

Group of answer choices

8%

9%

10%

12%