Rattle me Bones, Inc.'s common stock is currently selling for $66.25 per share. You expect the

next dividend to be $5.30 per share. If the firm has a dividend growth rate of 4%, what is its cost of equity?

a. 12.0%

b. 12.3%

c. 13.5%

d. 13.9%

e. 14.1%