The Down and Out Co. just issued a dividend of $2.26 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $50 a share, what is the company's cost of equity? (Do not round your intermediate calculations.)

Multiple Choice

10.25%

11.33%

4.91%

10.52%

10.79%