Suppose Stark, Ltd., just issued a dividend of $1.71 per share on its common stock.
The company paid dividends of $1.88, $1.97, $2.05, and $2.18 per share in the last four years.
If the stock currently sells for $45, what is your best estimate of the companys cost of equity
capital using the geometric average growth rate in dividends?

	a.	10.30%
	b.	11.30%
	c.	8.30%
	d.	9.30%