Suppose that Bank of the South is expected to pay a dividend of $1.75 per share next year. The bank has experienced a steady growth in dividends of 2% per year and the market expects that trend to continue. The current price of a share is $37. What is the cost of equity using the dividend growth model assuming no flotation costs? Div. (1+g) R = . +g R Div, (1+g) P.(1-F) +g a) 4.78% O % b) 6.73% c) 3.78% d) 5.21%