Rivoli Inc. hired you as a consultant to help estimate its cost of capital.You have been provided with the following data:D₀= $0.80; P₀

= $22.50; and g = 8.00% (constant).Based on the DCF approach, what is the cost of equity from retained earnings?

A)

10.69%

B)

11.25%

C)

11.84%

D)

12.43%

E)

13.05%