Goliath Corp. just paid an annual dividend of $5.40 per share. The dividend growth rate is 5.5 percent, the tax rate is 21 percent, and the common stock sells for $58.50 per share. What is the cost of equity?

Multiple Choice

• 9.73%

• 9.22%

• 7.15%

• 14.73%

• 15.24%