S. Bouchard and Company hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D₀ = $0.85; P₀ = $22.00; and g = 6.00% (constant). The CEO thinks, however, that the stock price is temporarily depressed, and that it will soon rise to $38.00. Based on the DCF approach, by how much would the cost of equity from retained earnings change if the stock price changes as the CEO expects?

	a.	1.93%
	b.	1.43%
	c.	1.71%
	d.	1.72%
	e.	1.98%