Southern Home Cookin' just paid its annual dividend of $.75 a share. The stock has a market price of $34 and a beta of 0.9. The return on the U.S. Treasury bill is 5 percent and the market risk premium is 12 percent. What is the cost of equity?

A. 17.52 percent

B. 15.80 percent

C. 11.84 percent

D. 19.40 percent

E. 13.27 percent