Minder Industries stock has a beta of 1.08.the company just paid a dividend of $.65 and the dividends are expected to grow at 4 %.The expected return on the market is 10.5% and the T Bill rate is 3.4%.The most recent stock price for the company is $72. What is the cost of Equity using the DGM method?

a) 5.1%

b)2.5%

c)7%

d)4.98%