Judy's Boutique just paid an annual dividend of $$2\mathrm{.}35$ on its common

stock. The firm increases its dividend by $3\mathrm{.}15$ percent annually. What is

the company's cost of equity if the current stock price is $$38\mathrm{.}44$ per

share?

Multiple Choice

$8\mathrm{.}75\%$

$9\mathrm{.}46\%$

$9\mathrm{.}82\%$

$9\mathrm{.}01\%$