The current dividend yield (ratio of current dividend over current price) on Delta's stock is 4.8%. The firm paid today in the morning a $2.10 dividend. The rumor is that the dividend will be $2.205 next year. The dividend growth rate is expected to remain constant at the current level. What is the Delta's cost of equity?

A.

10.04%

B.

16.07%

C.

43.75%

D.

9.80%

E.

21.88%