Fabrique Inc. common stock is currently trading at $30.00 a share. The company just paid $1.75 per share as its annual dividend. The dividends have been increasing by 3 percent annually and are expected to continue doing the same. What is this firm's cost of equity?

a. 8.24 percent

b. 9.01 percent

c. 12.14 percent

d. 6.20 percent

e. Not enough information given

I know the cprrect answer but i dont know how to get it. please show work