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Investors in IBM common stock expect the firm to pay a dividend next year of $2.05 per share. Investors also expect these dividends to grow

Investors in IBM common stock expect the firm to pay a dividend next year of $2.05 per share. Investors also expect these dividends to grow at a rate of 6%per year. The price of IBM common stock is currently$77per share. Based on this information, IBMs current cost of common equity capital is closest to which of the following?

A.2.66%

B.6.00%

C.8.66%

D.3.34%

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