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 $25 per share, its last dividend was $2.25. It has a beta of 1.2, the risk-free rate is 5%, and the expected return on the market is 10%. Its bonds earn a return of 5.75%. Using the discounted cash flow approach, what is its cost of equity? 11.80% O 12.80% O 13.36% O 11.00%