Please explain why D is the answer.

13. The Umbrella Corporation decides to pay dividends at $1.80 per share and expects it to grow by 3.0% per year in the future. The stock is now trading at $32.6. What does it imply about the estimate of the cost of equity? a) 2.5% b) 4.5% c) 6.5% d) 8.5%