Kovach Lumber Company hired you to help estimate its cost of capital. You were provided with the following data: D$1=$ $$1\mathrm{.}60$; P$0=$ $$30\mathrm{.}00$; g $=6\mathrm{.}50\%($constant$)$; and F $=3\mathrm{.}00\%.$ What is the cost of equity raised by selling new common stock?

a$.$

$11\mathrm{.}50\%$

b$.$

$11\mathrm{.}83\%$

c$.$

$12\mathrm{.}36\%$

d$.$

$12\mathrm{.}00\%$