Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You

have been provided with the following data: $D_0=$$$0\mathrm{.}80$;$P_0=$$$22\mathrm{.}50$; and $g=$

$8\mathrm{.}00\%($constant$).$ Based on the DCF approach, what is the cost of equity from

retained earnings?

A$)10\mathrm{.}69\%$

B$)11\mathrm{.}25\%$

C$)11\mathrm{.}84\%$

D$)12\mathrm{.}43\%$

E$)13\mathrm{.}05\%$