The Down and Out Co. just issued a dividend of $2.86 per share on its common stock. The company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. If the stock sells for $55 a share, what is the company's cost of equity? (Do not round your intermediate calculations.) ? 11.94% ? 13.19% ? 12.56% 0 5.69% 0 12.2%