The cost of equity using the discounted cash flow (or dividend-yield-plus-growth-rate) approach

Tucker Enterprisess stock is currently selling for $18.75 per share, and the firm expects its per-share dividend to be $3.75 in one year. Analysts project the firms growth rate to be constant at 5.80%. Using the discounted cash flow (or dividend-yield-plus-growth-rate) approach, what is Tuckers cost of internal equity?

a. 24.51%

b. 27.09%

c. 21.93%

d. 25.80%