Danni Sports LLC stock has a beta of 1.15. The company just paid a dividend of $.75 and the dividends are expected to grow at 4.5% per year. The expected return on the market is 11% and Treasury bills are yielding 3.7 percent. The most recent stock price for the company is $84. Calculate the cost of equity using the Dividend Discount Model method

.0543 or 5.43%.

.0453 or 4.53%.

.0640 or 6.40%.

.0843 or 8.43%.

None of the above