Grant Enterprisess stock is currently selling for $45.56 per share, and the firm expects its per-share dividend to be $1.38 in one year. Analysts project the firms growth rate to be constant at 7.27%. Estimating the cost of equity using the discounted cash flow (or dividend growth) approach, what is Grants cost of internal equity?

a. 10.30%

b. 12.88%

c. 9.79%

d. 10.82%