Suppose Stark, Ltd., just issued a dividend of $2.40 per share on its common stock. The company paid dividends of $1.21, $1.77, $2.05, and $2.22 per share in the last four years. If the stock currently sells for $47, what is your best estimate of the companys cost of equity capital using the arithmetic average growth rate in dividends?

Select one:

A. 19.63%

B. 15.41%

C. 17.48%

D. 16.36%

E. 17.70%