Please post the work:

29.

-A share of Delta Inc. sells for $28.16. The stock is expected to pay $1.35 per share dividend next year. Expected growth in dividends is at 3 percent. What is the cost of equity for this stock?

A. 7.42 percent

B. 7.79 percent

C. 19.67 percent

D. 20.14 percent

E. 20.86 percent