The earnings, dividends, and stock price of Natalie Inc. are expected to grow at 4% per year in the future. Natalie's common stock sells for $30 per share, its last dividend was $2.25. It has a beta of 1.2, the risk-free rate is 4%, and the expected return on the market is 10%. Its bonds earn a return of 5.75%. Using the own-bond-yield-plus-judgmental-risk-premium approach, what is its cost of equity? O 12.70% 12.80% 11.75% O 12.75%