Hobgoblin Corp., a maker of Halloween costumes, has been growing consistently at a rate of 5% per year, that is, the sustainable growth rate is 5%. Its current balance sheet shows assets of $100 million and equity of $50 million. Sales in the coming year are expected to be $200 million. Hobgoblin consistently pays out 75% of its net income as dividends to shareholders. If Hobgoblin shares sell at a price-earnings ratio of 10, what is Hobgoblin's shareholders' required rate of return? O a. 15.0% b. 12.5% O c. 11.8% O d. 11.0% e. 10.7%