Kinston Nielson Motors has a share price of $25 today. If Nielson Motors is expected to pay a dividend of $0.75 this year, and its stock price is expected to grow to $26.75 at the end of the year, then Nielson's dividend yield and equity cost of capital are:

	a.	3.0% and 7.0% respectively.
	b.	4.0% and 6.0% respectively.
	c.	3.0% and 10.0% respectively.
	d.	None of the answers are correct.
	e.	4.0% and 10.0% respectively.