Martin decided to purchase 500 shares of Radiant Company stock for the Arbors portfolio at a price of $26.50 per share. What is the implied cost of capital from the transaction given the fact that Radiant Company will pay a dividend of $2.10 per share at the end of the period, and dividends are expected to grow at a rate of 4.50% annually?

Choose one answer.

		10.1%
		8.1%
		3.4%
		12.4%