Farrah's Flowers is expected to pay an annual dividend of $$5\mathrm{.}17$ on its common stock in one year. The current stock price is $$78\mathrm{.}79$ per share. The company announced that it will increase its dividend by $3\mathrm{.}50$ percent annually. What is the company's cost of equity?

Multiple Choice

$10\mathrm{.}67\%$

$10\mathrm{.}06\%$

$9\mathrm{.}50\%$

$9\mathrm{.}78\%$

$10\mathrm{.}29\%$