Pierce Enterprisess stock is currently selling for $45.56 per share, and the firm expects its per-share dividend to be $1.38 in one year. Analysts project the firms growth rate to be constant at 7.27%. Using the cost of equity using the discounted cash flow (or dividend growth) approach, what is Pierces cost of internal equity?

12.88%

9.79%

13.91%

10.30%