Estimate the cost of equity for Aqua America. Aqua's stock (WTR) was selling for 33.62 per share at the end of 2017 September. Dividend payments for the next year were expected to be 1.18 a share. Analysts in 2017 were forecasting an annual growth rate of 5% in the case of Aqua. Estimate the cost of capital,

(a) 8.5% (b) 3.5% (c) 10.1% (d) 6.6%