Suppose you must estimate the cost of equity for a firm, and you have the following data: r_RF = 5.5%; r_M r_RF = 6%; b = 0.8; D₁ = $1.00; P₀ = $25.00; g = 6%; and r_d = the firm's bond yield = 6.5%. What is this firm's cost of equity using the bond-yield-plus-risk-premium approach? Use a 4.5% judgmental risk premium in your calculation.

Group of answer choices

10.3%

10.5%

10%

11%

9%