The price of Ravelle Events stock is $38.00 per share. The stocks beta is 1.30. At the end of one year, the firm will pay its annual dividend of $1.05 per share. Dividends are expected to grow 4.5 percent per year for the foreseeable future. What is the cost of equity capital?

• 7.39%

• 2.76%

• 2.88%

• 7.26%

• 9.44%