Given the following information, what is your best estimate for the firms cost of equity on January 2, 2003, if the stock sells for $42 on that day?

Date 12/31/97 12/31/98 12/31/99 12/31/00 12/31/01 12/31/02

Dividend $1.50 $1.73 $2.01 $2.34 $2.71 3.17

15.92%

23.40%

24.59%

Cannot be estimated because of lack of information

None of the above