Stock in Globex Corporation has a beta of 0.9. The expected market return is 12%, and T-bills are currently yielding 3.5%. The company\'s next dividend is expected to be $2 per share, and dividends have been growing at a 4% annual rate. If the stock sells for $25 per share, what is the average of the company\'s cost of equity?

A. 11.59%

B.10.68%

C. 9.77%

D. 8.86%

E. 7.95%