Suppose you must estimate the cost of equity for a firm, and you have the following data: rRF = 5.0%; rM ? rRF = 4%; b = 0.9; D1 = $2.00; P0 = $50.00; g = 5%; and rd = the firm's bond yield = 5.8%. What is this firm's cost of equity using the CAPM approach?

a. 8.6%

b. 7.5%

c. 8.8%

d. 8.2%

e. 9.0%